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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

​​EUR/USD, GBP/USD resume their descents while USD/CNH advances amid greenback strength

​​Outlook on EUR/USD, GBP/USD and USD/CNH amid strong post US employment data greenback strength.

USD Source: Bloomberg

​​​EUR/USD slips to seven-week low

EUR/USD resumed its downtrend amid Friday's nearly twice as expected strong non-farm payrolls reading which saw the chances of a March rate cut by the Federal Reserve (Fed) diminish yet further and led to a rally in the US dollar.

​The cross is thus seen falling towards its early November high and December low at $1.0756 to $1.0724 which may offer support ahead of its late October $1.0695 high.

​Resistance above last Monday’s $1.0796 low is seen along the 200-day simple moving average (SMA) at $1.0839.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD probes lower end of its sideways trading band

GBP/USD continues to range trade but is now testing the lower end of its two-month band and probes the $1.2612 to $1.2597 support zone which consists of the late December-to-January lows.

If slipped through, the 200-day SMA at $1.2565 may be reached as well, ahead of the $1.2501 early December low.

​Minor resistance can be found at Tuesday’s $1.264 low and also at the 23 January low at $1.2649.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/CNH rallies amid strong US dollar

​Friday’s much better-than-expected US employment data, with the US economy having added jobs for 37 months in a row, and slowing China services growth as well as the country’s 10 year bond yield trading below its Covid-19 epidemic low have led to further USD/CNH strength.

​With both the 200-day SMA at CN¥7.2016 and the December high at CN¥7.20 having been exceeded, the mid-January peak at CN¥7.2322 is back in sight.

​Minor support is seen along the 200-day SMA at CN¥7.2016 as well as at last Monday’s CN¥7.1969 high.

USD/CNH chart Source: IT-Finance.com
USD/CNH chart Source: IT-Finance.com

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