EUR/USD nears April highs while EUR/GBP and EUR/JPY continue their descents
Outlook on EUR/USD, EUR/GBP and EUR/JPY around Germany’s ZEW sentiment figure for July and as UK unemployment and average hourly earnings rise.
EUR/USD nears its April high
EUR/USD's recovery off its recent $1.0845 to $1.0835 support zone on the back of weaker-than-expected Non-Farm Payrolls last Friday and Federal Reserve (Fed) commentary by a few members mentioning that the Fed is considering pausing its monetary tightening this year propelled it to above the June peak at $1.1012.
The cross now has the April highs at $1.1075 to $1.1095 in view which might be reached after Germany’s ZEW sentiment indicator for July has been published.
Minor support below the $1.1012 June high comes in at Friday’s high at $1.0973 as well as at the early-July high at $1.0934.
EUR/GBP slips towards its June low
EUR/GBP resumed its slide towards its £0.8521 June and current July-lows as UK unemployment earlier this morning rose to 4%, while average hourly earnings increased by 6.9% (including bonuses), putting more pressure on the Bank of England (BoE) to keep raising rates.
A fall through £0.8521 would target the mid-August 2022 high at £0.8511, below which the 12 August 2022 high can be spotted at £0.8493.
Any potential bounce is expected to encounter resistance between the 30 June low at £0.8577 and Monday’s high at £0.8584.
EUR/JPY continues its descent
EUR/JPY topped out at its late June-high at ¥158.00 as Japanese wage inflation unexpectedly rose by twice of what was expected in May.
The 23 June low at ¥155.06 is currently being tested, a fall through which will have the 20 June low at ¥154.05 in its sights. Further down the March-to-July uptrend line can be spotted at ¥153.00.
Minor resistance sits at Monday’s ¥155.33 low, last Thursday’s ¥155.84 low and also at Monday’s ¥156.67 high. While remaining below the latter level, further downside is in store.
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