EUR/USD, GBP/USD and USD/JPY all move higher as markets await US CPI figures
The uptrends in EUR/USD and GBP/USD have been given a lift by USD weakness so far this week, but sentiment remains fragile ahead of inflation figures.
EUR/USD bulls hoping for a higher low
After a recovery above the 50-day simple moving average (SMA) yesterday, EUR/USD has seen little movement so far this morning.
The pullback from the late January highs has found some buying pressure around $1.07, with the potential for a higher low and then a move back to $1.10 now building. This would leave the uptrend intact and point towards additional upside.
Sellers will want to see a reversal back towards $1.05 to bolster a more bearish view, potentially ending the recovery in place here since the beginning of October.
GBP/USD edges up after employment data
Dollar weakness provided GBP/USD with the chance to rally yesterday, but gains over the past week have been capped by the 50-day SMA. Some more gains were seen this morning following the latest UK employment and wage figures.
Should the pair find the strength to move higher, which may come if the dollar weakens post-consumer price index (CPI), then the $1.24 highs from December and January are the obvious first target. Beyond this the May 2022 highs at $1.276 come into view.
A failure to make further gains would see the price drop back to test the 200-day SMA, as it did last week, and then below this the January low around $1.188 becomes the next area of possible support.
USD/JPY hovers around ¥132.00
USD/JPY's rally from the January lows has seen the price move back above the 50-day SMA, though the downtrend is still in place.
A weaker CPI reading could drive a fall in the dollar, potentially opening the way to ¥127.30 and the January lows. A move below this reinforces the downtrend.
Continued upside would head towards the 200-day SMA, broken to the downside back in mid-December.
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