EUR/USD on track for nine consecutive days of gains while EUR/GBP and EUR/JPY recover
Outlook on EUR/USD, EUR/GBP and EUR/JPY amid hawkish European Central Bank and as U.S. inflation is significantly slowing down.
EUR/USD approaches mid-February 2022 low at $1.1280
EUR/USD seems to be on track for its ninth consecutive day of gains versus the greenback and is fast approaching the 61.8% Fibonacci retracement of the 2020-to-2022 bear market and the mid-February 2022 low at $1.128. Between it and the $1.13 mark the currency pair may lose upside momentum, though.
If not, the late February 2022 highs between $1.139 to $1.1396 may be reached as well.
Minor support sits at Monday’s $1.1204 low.
EUR/GBP is breaking through its April-to-July downtrend line
EUR/GBP's recovery from its £0.8504 current July low, last traded in August 2022, has now taken it to above the April-to-July downtrend line at £0.8591. If a daily chart close above this level were to be made, the trendline break would be validated with the £0.8658 late June high representing a possible upside target.
En route lies the 55-day simple moving average (SMA) at £0.8622.
Support below the breached downtrend line at £0.8591 comes in at the £0.8584 10 July high. Further down sits the £0.8568 late May low.
EUR/JPY recovers further from last week’s low
EUR/JPY's descent from its late June high at ¥158.00, as Japanese wage inflation unexpectedly rose by twice of what was expected in May and pointed to the Bank of Japan (BoJ) probably having to tighten its monetary policy later this year, has taken it to last week’s low at ¥153.30.
From there the cross has since recovered somewhat and has risen to Monday’s high at ¥156.34. If overcome, the 30 June low at ¥156.69 may be reached next.
Slips should find support around the ¥155.13 mid-July high ahead of the ¥154.49 12 July high.
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