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EUR/USD, EUR/GBP look bid ahead of rate decisions and AUD/USD holds post RBA meeting

EUR/USD, AUD/USD benefit from further US Dollar consolidation, EUR/GBP bounces off good support ahead of BoE rate decision.

EUR/USD breaks through a one-month downtrend line at $1.1224 ahead of the ECB meeting

EUR/USD began the week by rallying from Friday’s Doji candlestick formation, the low of which was made at $1.1122, marginally above the April and May 2019 lows at $1.1111 to $1.1107 which constitute key support.

The one-month downtrend line at $1.1224 is currently being probed ahead of this week’s European Central Bank (ECB) rate announcement on Thursday. It sits within the $1.1222 to $1.1235 December lows. If bettered, the 55-day simple moving average (SMA) at $1.1306 would be next in line.

Slips should find support around the $1.1186 November low.

EUR/GBP once more bounces off multi-year key support ahead of BoE rate decision

EUR/GBP once again recovered from the £0.8313 to £0.8277 key support zone which is made up of the December 2016, April 2017, December 2019 and February 2020 lows. Because of the confluence of lows seen in this region over several years, it is technically important and is likely to continue to hold for now.

The cross is heading back up towards the November low and 18 and 21 January highs at £0.8377 to £0.8381, whilst awaiting Thursday’s Bank of England (BoE) rate decision. Slightly further up the two-month resistance line can be spotted at £0.8389 and is expected to cap, if reached.

Intraday support comes in between the January 5 and 11 lows at £0.8335 to £0.8324.

AUD/USD continues to look bid in wake of RBA’s monetary policy decision

AUD/USD only briefly dropped following the Reserve Bank of Australia’s (RBA) widely anticipated announcement of an end to quantitative easing (QE) and dovish stance earlier today.

The rally off last week’s lowest level seen since July 2020 at $0.6968 has further to go with the $0.7082 to $0.7106 August and 20 December lows being in focus. Together with the early January low at $0.7130 this resistance area is likely to cap in the short-term, though. If not, the September trough at $0.7170 and $0.7182 January 26 high, the last reaction high, could be reached as well.

Only a currently unexpected slip through Friday’s low at $0.6968 would put the October 2019 high at $0.6930 on the cards.

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