EUR/USD trades in six-week, EUR/GBP in five-week lows while AUD/USD range trades
Outlook on EUR/USD, EUR/GBP and AUD/USD as France skirts a recession and Australian retail sales disappoint.
EUR/USD dipped to levels last traded in mid-December
EUR/USD remains below its 200-day simple moving average (SMA) at $1.0843, having slipped to a six-week low at $1.0796 on Monday above which it trades as the French economy stalls in the fourth quarter and skirts a recession.
A fall through $1.0796 may lead to the 6 November high and December low at $1.0756 to $1.0724 being eyed. Minor resistance above the 200-day SMA can be spotted at Monday’s high at $1.085 and also at the 5 January low at $1.0877.
EUR/GBP drops to new five-month low
EUR/GBP’s slide from its £0.8714 December high has taken it to Monday’s £0.8514 five-month low which sits within the significant June-to-August support area at £0.8519 to £0.8493. This zone is expected to hold, at least over the next couple of days, but if not, the April 2021 low at £0.8472 would be in focus.
Resistance above Monday's £0.8544 high lies at the £0.855 December low with further resistance seen along the December-to-January downtrend line at £0.8556. Whilst it caps, downside pressure should retain the upper hand.
AUD/USD range trades above one-month low
AUD/USD’s descent from its five-month December peak at $0.6871 has taken the cross to its mid-January $0.6525 low above which it has been trading in a tight sideways range ever since.
An attempt to the upside by reaching $0.6624 has been made on Tuesday morning amid an unexpected fall in Australian retail sales. If overcome, the 55-day SMA at $0.6651 may be reached. Support is seen along the 200-day SMA at $0.6578 and along the October-to-January uptrend line at $0.656 ahead of last Tuesday’s $0.6552 low.
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