EUR/GBP drops back but AUD/USD and EUR/JPY push higher
While the euro is faltering against sterling after recent strong gains, AUD/USD and EUR/JPY are both rallying.
EUR/GBP drifts lower from recent high
After hitting a three-month high earlier in the week, EUR/USD price has dropped back to the 200-day simple moving average (SMA).
The huge gains of late July and early August mean that this is not surprising, but overall the new bullish view remains in place. If the price holds the 200-day SMA then a rebound towards £0.86 may develop. A close back below £0.85 in coming weeks might signal that a lower high has been created.
AUD/USD in strong form
Another big up day for the AUD/USD pair has seen it move back to the 200-day SMA, reaching its highest level in two weeks.
The price has recouped much of its recent weakness, though it remains well off the highs of the first half of July. A close back above $0.66 would bolster the bullish view.
Meanwhile a reversal below $0.66 would be a bearish development, creating a lower high.
EUR/JPY makes gains
Two days of gains have helped the EUR/JPY pair to recover some lost ground, though it is still well below the 200-day SMA.
There is a high risk of a lower high being created below the 200-day which will reinforce the bearish view. Additional gains target ¥161.87, and then to ¥163.64.
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