EUR/USD slips, USD/JPY rises on appreciating US dollar but AUD/USD remains bid
Outlook on EUR/USD, USD/JPY and AUD/USD as a new year begins.
EUR/USD comes further off its five-month high
Last week EUR/USD managed to rise to $1.1139, close to its 27 July high at $1.1149, before correcting lower amid an appreciating US dollar for a third straight session.
The fall through the accelerated December uptrend line at $1.1096 led to the $1.1017 to $1.1009 November peak and mid-December high being revisited on Tuesday morning. Were this support zone to give way, the 19 December high at $1.0988 could be revisited. Above Tuesday’s intraday high at $1.1050 sits Friday’s $1.1084 high.
USD/JPY still hovers above five-month December low
USD/JPY is showing triple positive divergence on the daily Relative Strength Index (RSI) which accompanied last week’s low at ¥140.26 and points to a probable short-term bullish reversal in the currency pair.
A rise above Friday’s ¥141.91 high would put the 200-day simple moving average (SMA) and the November-to-January downtrend line at ¥142.97 to ¥143.64 on the cards. Minor support below Tuesday’s ¥140.81 intraday low sits at the ¥140.26 December trough.
AUD/USD targets its five-month December high
AUD/USD’s minor correction from last week’s five-month December peak at $0.6871 to Friday’s $0.6782 low has been followed by an attempt to revisit last week’s peak. It remains in sight provided that Friday’s low at $0.6782 underpins with the June and July highs at $0.6894 to $0.6899 representing further possible upside targets.
Below support at $0.6782, the 19 December high can be spotted at $0.6774 and much further down the $0.6688 early December peak.
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