EUR/USD hovers above six-week low while GBP/USD and USD/JPY stay side-lined
Outlook on EUR/USD, GBP/USD and USD/JPY ahead of this week’s BoJ summary of opinions, Fed and BoE monetary policy meetings.
EUR/USD hovers above six-week low
EUR/USD still trades along its 200-day simple moving average (SMA) at $1.0844, having slipped to a six-week low at $1.0813 on Friday above which it now hovers ahead of Wednesday’s US Federal Reserve (Fed) meeting.
A drop through $1.0813 may lead to the 6 November high and December low at $1.0756 to $1.0724 being reached next.
Minor resistance above Monday’s intraday high at $1.0850 sits at the 5 January low at $1.0877.
GBP/USD remains side-lined
GBP/USD continues to range trade below last week’s high at $1.2775 while staying above Friday’s $1.2676 low. Below it meanders the 55-day SMA at $1.2653 and lies Tuesday’s low at $1.265.
Further down lies the more significant $1.2612 to $1.2597 area which consists of the late December to January lows.
A rise above Friday’s high at $1.2758 is needed for last week’s peak at $1.2775 to be reached.
USD/JPY continues to range trade
USD/JPY remains sidelined below its current January high at ¥148.80 whilst being supported by the lower uptrend channel line at ¥147.70.
Below it Thursday and Friday’s lows can be seen at ¥147.43 to ¥147.09 ahead of last week’s ¥146.65 low. A rise above Monday’s intraday high at ¥148.33 would likely put the ¥148.80 current January high back on the plate.
While ¥146.65 underpins, the cross is expected to continue to rise within its 2024 uptrend channel with the ¥148.80 high and then the psychological ¥150.00 region remaining in sight. Were a slip through ¥146.65 to occur, however, the 5 and 11 January highs and 55-day SMA at ¥146.41 to ¥145.87 could be reached instead.
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