EUR/USD, EUR/GBP and AUD/USD come off this week’s highs
Outlook on EUR/USD, EUR/GBP and AUD/USD amid month-end US dollar shorts profit taking.
EUR/USD comes off its near four-month high
EUR/USD comes off Wednesday’s four-month high at $1.1017 despite German retail sales rebounding from a 0.8% drop in September and beating forecasts of a 0.4% increase.
End of month profit taking on US dollar shorts are pushing the cross back down towards its November uptrend line at $1.0906. Below it, support can be spotted between last Wednesday’s low at $1.0853 and the July low at $1.0834.
A currently unexpected rise above the late June high at $1.1012 and this week’s high at $1.1017 would engage the August peak at $1.1065.
EUR/GBP slips towards October low
Over the last few weeks EUR/GBP has swiftly come off its six-month high at £0.8766 towards its October £0.8617 low.
Given the speed of the recent descent, a fall through £0.8617 looks probable with the late August high at £0.8611 and the early June and mid-September lows at £0.8569 to £0.8568 then being in focus.
The early November low at £0.865 is likely to act as resistance, should a minor rebound be seen at all.
AUD/USD stalls in 3 ½ month highs
AUD/USD's rise to its 3 ½ month high at $0.6676 has given way to a minor correction which may take the cross back down towards the 21 November high and the 200-day simple moving average (SMA) at $0.6589 to $0.6581.
While the next lower August and September highs and last Wednesday’s reaction low at $0.6522 to $0.6511 hold, the medium-term uptrend will stay intact.
A rise above $0.6676 would have the early July high at $0.6705 in view.
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