EUR/USD, GBP/USD and USD/JPY slip ahead of weekend
Outlook on EUR/USD, GBP/USD and USD/JPY as resolution to US debt ceiling negotiations likely be found.
EUR/USD trades at near two-month low
EUR/USD's recent descent has taken it to a near two-month low as flight-to-quality flows propped up the greenback due to the ongoing US debt ceiling negotiations. The cross is trying to stabilise around Thursday’s low at $1.0762, below which lies the mid-March high at $1.076. Further down sits the 24 March low at $1.0714.
Resistance above the early-April low at $1.0789 can be seen at the mid-February high at $1.0804. The next higher 10 April low at $1.0832, last week’s low at $1.0848 low and the 55-day simple moving average (SMA) at $1.0868 are unlikely to be reached on Friday.
An unexpected bullish reversal and daily chart close above the one-month downtrend line and Tuesday’s high at $1.0886 to $1.0904 is needed for a positive bias to gain hold.
GBP/USD continues to slide amid ongoing US debt ceiling negotiations
GBP/USD's two-week descent has taken it close to the $1.2387 to $1.2345 mid- to late-April lows which should offer good support. This is despite UK consumer confidence improving for the fourth month.
Support below $1.2345 sits at the mid-February high and early-April low at $1.2275 to $1.227. In case of a minor bounce being seen on Friday, the $1.2445 mid-May low may cap.
Only a currently unexpected bullish reversal, rise and daily chart close above Wednesday’s $1.2546 high would put the late-April high at $1.2584 on the map.
USD/JPY comes off six-month high
After six consecutive days of rising, USD/JPY is beginning to give back some of its recent gains on profit taking ahead of the weekend.
The cross is thus retracing back from its ¥138.74 six-month high made on Thursday. It is about to test the March and early-May highs at ¥137.91 to ¥137.77 which may offer support. If not, the 200-day SMA at ¥137.09 should do so.
Were a currently unexpected rise take the currency pair to above this week’s ¥138.74 high, the late-November high at ¥139.89 would be eyed.
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