EUR/USD, GBP/USD and USD/JPY amid depreciating US dollar
Outlook on EUR/USD, GBP/USD and USD/JPY as the greenback slips to two-month lows amid falling US yields.
EUR/USD flirts with late August peak
EUR/USD’s advance is approaching its $1.0945 late August high as the greenback slips to a 2 ½-month low amid falling US yields. If overcome, the late June high at $1.1012 will be next in line, together with the August $1.1065 peak.
Minor support can be seen around last Tuesday’s $1.0887 high ahead of the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0808.
GBP/USD seems to have shrugged off weak UK retail sales
GBP/USD is seen trading back above the 200-day SMA at $1.2446 below which it slid last week amid weaker-than-expected inflation and retail sales.
A rise above last week’s high at $1.2506 would engage the late August low at $1.2548 ahead of the mid-August low at $1.2617. These levels will remain in sight while Friday’s low at $1.2375 underpins.
Below it the mid-October high can be made out at $1.2337 and may also offer interim support, were it to be revisited which looks to be unlikely at the moment. Further down minor support can be found at the $1.2288 late October high and along the 55-day SMA at $1.2279. While the next lower 10 November low at $1.2188 isn’t giving way, the October-to-November uptrend will remain intact.
USD/JPY tops out near the October 2022 peak
Last week USD/JPY topped out around its October 2022 peak at ¥151.95 and then slid through its July-to-August tentative uptrend line at ¥150.52 as the greenback dropped amid falling US yields.
On Monday morning the cross also slid through the 55-day SMA at ¥149.26 to a six-week low ahead of this week’s Japan consumer price inflation data out on Friday. The October trough at ¥147.29 is back in the picture provided no bullish reversal takes the currency pair back above Thursday’s high at ¥151.43.
Minor resistance above the 55-SMA at ¥149.26 is seen around Wednesday’s ¥150.05 low ahead of the breached tentative uptrend line, now because of inverse polarity a resistance line, at ¥150.50.
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