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EUR/USD pauses while GBP/USD and AUD/NZD rise further ahead of final US Q4 GDP data

Outlook on EUR/USD, GBP/USD and AUD/NZD as risk-on sentiment comes back to the fore.

Dollar and euro Source: Bloomberg

EUR/USD’s advance stalls ahead of final US GDP data release

EUR/USD’s advance from last week’s $1.0714 low is losing upside momentum on its way up towards the current March high at $1.0929 high ahead of Thursday’s final quarter US gross domestic product (GDP) data release.

The cross is being supported by the two-week uptrend line at $1.083 and the $1.0804 to $1.0801 mid-February and Monday’s highs. While the latter level holds, immediate upside pressure should be maintained. A rise above Wednesday’s high at $1.0871 is needed, though, for the bulls to be back in control. Minor support below Monday’s $1.0801 high can be seen at the mid-March high at $1.076 ahead of the 55-day simple moving average (SMA) at $1.074.

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

GBP/USD is seen heading back up to Wednesday’s $1.2361 high

GBP/USD has resumed its ascent towards Wednesday’s $1.2361 high, having briefly dipped down to $1.2294 ahead of Thursday’s final Q4 GDP announcement. A rise above this week’s high at $1.2361 would probably open the way for the December and January highs at $1.2446 to $1.2448 to be reached next. These levels represent strong resistance, though.

Support below Thursday morning’s $1.2294 low and Friday’s $1.2288 high can be found between the 24 January low and mid-February high at $1.2270 to $1.2263. Only a currently unexpected bearish reversal to below Friday’s low at $1.2191 would void our short-term bullish outlook and put the 55-day SMA at $1.2164 back on the map.

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

AUD/NZD once more holds at support

AUD/NZD on Wednesday, once again, managed to stabilise above its current March low at $1.0675 before forming a bullish ‘Hammer’ on the daily candlestick chart.

Therefore, while the cross remains above Wednesday’s $1.0687 low, short-term upside could take it back towards last week’s high at $1.0804. In case of a sudden bearish reversal taking the currency pair to below the recent $1.0687 to $1.0675 lows on a daily chart closing basis, the late December trough at $1.0624 would be in focus.

AUD/NZD chart Source: IT-Finance.com
AUD/NZD chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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