EUR/USD, EUR/GBP and AUD/USD trade in four-to-six-month highs
Outlook on EUR/USD, EUR/GBP and AUD/USD as the greenback slips to two-month lows amid falling US yields.
EUR/USD trades in four-month highs
EUR/USD has now risen above the $1.0945 late-August high as the greenback drops to a 2 ½-month low as US yields continue to slide and as EU car registrations rise 14.6% in October. The late-June high at $1.1012 is now in focus, ahead of the August $1.1065 peak.
Minor support below the $1.0945 late-August high comes in around last Tuesday’s $1.0887 high ahead of the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0809.
EUR/GBP consolidates near its six-month high
Last week EUR/GBP briefly traded in six-month highs at £0.8766 with the cross retesting this level on Monday before once more being rejected by it. If exceeded, the mid-April low at £0.8791 would be next in line.
Support below the 20 October high at £0.8740 can be found around the £0.8706 to £0.8701 July and September highs. While last week’s low at £0.8689 underpins, the short-term uptrend remains valid.
AUD/USD advances to four-month high
AUD/USD's advance to four-month highs and the 200-day SMA at $0.659 occurred as the Reserve Bank of Australia (RBA) stated that it still sees upside risks to inflation due to a further rise in prices of services and as the housing market remains healthy. This left the door open for further rate hikes and propelled the Aussie dollar higher. Next up is the 10 August high at $0.6616.
Potential minor slips should find support around last Wednesday’s $0.6542 high. More significant support can be spotted between the late August to early November highs at $0.6523 to $6511. While the next lower $0.6453 low seen last Friday underpins, the recent upside breakout of the August-to-November bottoming pattern will remain valid.
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