EUR/USD recovers on hopes of Eastern European de-escalation, EUR/GBP down and GBP/USD up on sterling strength
EUR/USD advances on waning war jitters while EUR/GBP slips and GBP/USD rises on Boris Johnson's announcement to remove all Covid-19 restrictions.
EUR/USD rises on hopes of Biden-Putin summit
EUR/USD is seen heading back up again after the US President Biden and the Russian President Putin agreed in principle to meet to discuss the Ukrainian crisis.
On the back of this news EUR/USD bounced off the 55-day simple moving average (SMA) and one-month support line at $1.133 to $1.1314 and is advancing towards the late November, December and last week’s highs at $1.1382 to $1.1396. This area will need to be exceeded, for the January and current February highs at $1.1482 to $1.1495 to be back in the frame.
Only a slide through minor support at today’s $1.1314 low could lead to last week’s low at $1.1281 and the early January low at $1.1272 being revisited.
The gradual EUR/GBP slide is ongoing
EUR/GBP continues to give back most of its early February swift advance in view of recent sterling strength, benefitting from a Covid-19 post-Omicron growth rebound and expectations for further Bank of England (BoE) interest rate hikes.
The mid-January trough at £0.8324 is currently being tested, below which beckons major support which remains to be seen between the January and early February lows at £0.8305 to £0.8286.
Minor resistance above the one-month resistance line at £0.8369 can be spotted at the £0.8381 November low and also at last week’s £0.8402 high and 55-day SMA at £0.8406.
GBP/USD trades near four-week highs
Last week’s strong GBP/USD bounce off the $1.3513 to $1.349 mid-November high, 6 January and 7 February lows, has taken it to a one-month high close to the current February high at $1.3644. This is on the back of the pound sterling strengthening amid expectations for further BoE interest rate hikes and the removal of all remaining Covid-19 restrictions in England, fully opening up the economy.
The 200-day SMA at $1.3687 represents the first technical upside target, followed by the January peak at $1.3749.
Only a currently unexpected fall through last week’s $1.3487 low, would put the $1.348 to $1.3431 support zone back into the picture. It is comprised of the early as well as the 25 and 26 January lows and the 55-day SMA. Further down lies the January trough at $1.3359.
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