The euro eases off ahead of US inflation reading while GBP/USD continues to look bid
US CPI may prompt some USD strength, but GBP/USD continues to make headway.
EUR/USD resumes its early January descent ahead of US inflation data
Downside targets are the one-month support line at $1.1287 as well as the late December low and the November-to-December channel support line at $1.1274 to $1.1266. Further support lies between the 7 and 20 December lows at $1.1237 to $1.1222 and at the November low at $1.1186.
All these levels are being targeted while no currently unexpected rise above last week’s high at $1.1365 is seen. If so, the mid-December and 29 December highs at $1.136 to $1.1369 would be back in the frame.
Key resistance remains to be seen between the late November and December peaks at $1.1382 to $1.1386. While the cross stays below it, the one-year downtrend retains the upper hand.
EUR/GBP flirts with support at £0.8335, a slip through which would eye £0.8313 to £0.8277
EUR/GBP is once more pounding this year’s low to date at £0.8335, a slide through which would eye the December 2016, April 2017, December 2019 and February 2020 lows at £0.8313 to £0.8277. This area represents key long-term support which is expected to withstand the first test.
Initial resistance is found between the October and November lows at £0.8381 to £0.8403.
While the next higher early January high at £0.8418 isn’t overcome, the downtrend – which has been in place since September of last year, remains firmly in charge.
GBP/USD is having another go at breaking through the $1.360 mark
Over the last few days GBP/USD has been attempting to rise above its early January high at $1.3598 and reach the eight-month downtrend line at $1.361 but so far to no avail.
While the one-month support line and the December high at $1.3555 to $1.3551 underpin, however, upside pressure should be maintained. Further, minor support comes in at the $1.3514 mid-November high.
A rise and daily chart close above the downtrend line at $1.361 would open the way for the November high and 200-day simple moving average (SMA) at $1.3699 to $1.37 to be reached.
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