EUR/USD, EUR/GBP and USD/JPY focused on Jackson Hole symposium
Outlook on EUR/USD, EUR/GBP and USD/JPY as all eye are on this week’s Jackson Hole symposium.
EUR/USD found support
EUR/USD’s decline from its $1.1275 July peak has taken it to the 200-day simple moving average (SMA) at $1.0803 from where it recovered on Wednesday ahead of Thursday’s Jackson Hole symposium.
Further sideways trading above this week’s low and high at $1.093 is expected to be seen until the end of the week. Immediate resistance sits at Thursday’s $1.0876 intraday high ahead of the early August low at $1.0912 and Tuesday’s peak at $1.093. For a bullish reversal to become feasible, a rise and daily chart close above $1.093 would need to be seen on a daily chart closing basis.
EUR/GBP recovers from one-year low
Following EUR/GBP’s sell-off to a one-year low at £0.8493 on Wednesday on dismal Eurozone and not much better UK flash Purchasing Managers' Index (PMI) data for August, the cross has regained most of this week’s losses.
It eyes Wednesday’s high at £0.8565, a rise above which would engage the 55-day SMA at £0.8582. Slips should find intraday support around the mid-August low at £0.8524 ahead of key support at the £0.8522 to £0.8504 June and July lows.
USD/JPY consolidation below its nine-month high is ongoing
USD/JPY’s correction lower from last week’s nine-month high at ¥146.56 seems to have found support at this week’s ¥144.54 low. The currency pair is heading back up again ahead of Friday’s speech by the Federal Reserve (Fed) chair Jerome Powell at the Jackson Hole symposium.
Strong resistance sits between this and last week’s highs at ¥146.40 to ¥146.56. A slip through this week’s low at ¥144.54 could lead to the early August high at ¥143.89 being revisited.
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