EUR/GBP riding high while AUD/USD and EUR/JPY rebounds continue
The euro has surged versus sterling and the yen, and the Aussie has made gains against the US dollar.
EUR/GBP at two-month high
EUR/GBP has shot higher following the UK rate cut last week, recouping all the losses since May.
Having made such strong gains so quickly, some consolidation may result, but with the price now back at £0.86 and above the 200-day simple moving average (SMA) the bullish view has reasserted itself.
It would need a reversal back below £0.855 and then £0.85 to suggest that the sellers have reasserted control.
AUD/USD surges on rebounding risk appetite
The Reserve Bank of Australia's (RBA’s) decision to leave rates unchanged has not halted the Australian dollar’s rebound. AUD/USD has recovered above $0.65 and shows no sign of stopping.
A low has formed around $0.648, and now the next target is the 200-day SMA, currently $0.6597. Further gains will see the price push into the range of May and June, between $0.66 and $0.67. A reversal below $0.648 is needed to reassert a bearish view.
EUR/JPY rallies off its low
After Tuesday’s losses EUR/JPY has rebounded on yen weakness, and a low may have formed for the time being.
Given the size of the pullback over the past month there is ample opportunity for a lower high, though a recovery above ¥162.00 and then above the 200-day SMA will help the bulls to rest easier. However, a failure to close above the 200-SMA could signal that a lower high has formed.
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