EUR/USD, EUR/GBP and EUR/JPY slide despite strong German factory orders
Outlook on EUR/USD, EUR/GBP and EUR/JPY post hawkish Fed minutes and as German factory orders come in much better-than-expected.
EUR/USD slips on hawkish Fed minutes
EUR/USD slid back to its recent lows at $1.0845 to $1.0835 amid hawkish Federal Reserve (Fed) minutes, a drop through which would push the $1.0789 April low to the fore.
While the 55-day simple moving average (SMA) at $1.0875 caps, a bearish bias remains in play. Minor resistance above it lies at Wednesday’s high at $1.0908 and also at Friday and Monday’s highs at $1.0931 to $1.0933.
EUR/GBP drops back towards its June low
EUR/GBP continues to slide towards its £0.8522 June low despite much better-than-expected German factory orders which rose to 6.4% month-on-month (MoM) in May, widely beating estimates of 1.2%.
A fall through £0.8522 would eye the mid-August 2022 high at £0.8511, below which lies the 12 August 2022 high at £0.8493.
Any potential bounce is expected to encounter resistance at the 30 June low at £0.8577.
EUR/JPY drifts lower
EUR/JPY's rise seems to have fizzled out at the late June high at ¥158.00 as traders are increasingly concerned about potential currency intervention by the Bank of Japan (BoJ).
So far a decline back to this week’s low at ¥155.85 has been seen, a drop through which would target the mid-June high at ¥155.33 and the 23 June low at ¥155.06.
Minor resistance can be spotted at the late June low at ¥156.69 and at Thursday’s intraday high at ¥156.91. While it caps, downside pressure should remain in play.
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