In this article, we have covered the highlights of global market news about the EUR/GBP, AUD/USD, GBP/USD and USD/CAD.
EUR/GBP Price Analysis: EURGBP falls off 200-SMA, but buyers stay optimistic
Before Friday’s European session, EUR/GBP accepts bids to retest the intraday low of 0.8708. By doing this, the currency pair consolidates its prior day’s largest daily advances since late September.
A retreat from the 200-SMA might illustrate the quote’s recent deterioration. The bearish triangle, which had been in place for three weeks, was successfully broken on Thursday, giving buyers of the pair optimism until the price fell below 0.8660.
The positive MACD indications and the robust, not overbought RSI (14) might also work in the sellers’ favor for the EUR/GBP.
Even if the quotation breaches the resistance-turned-support level of 0.8660, the downside may only be able to go as far as the bottom line of the triangle’s indicated triangle, which might provide a problem for the pair’s bears.
It should be noted that the EUR/GBP purchasers’ last line of defense is the September low at 0.8566.
Alternatively, to reinstate the EUR/GBP bulls, recovery advances must pass the 0.8740 200-SMA level.
AUD/USD Price Analysis: Regains 0.6300 after bouncing off three-week-old support.
As it recovers from a short-term crucial support line during the early hours of Friday, the AUD/USD pares the largest weekly loss in three weeks. However, at the time of press, the Australian dollar pair had broken a two-day decline and reached a fresh intraday high above 0.6320.
However, the recent recovery in the quotation doesn’t seem to be supported by the MACD signals’ declining positive bias or the RSI’s (14) sluggishness. The 10-DMA barrier around 0.6385 is another obstacle that the AUD/USD bulls must overcome.
The September-October low Fibonacci retracement level will be around 0.6455, and the late-October swing high will be near 0.6522.
Even yet, for the AUDUSD bulls to regain control, a successful run-up over the 0.6550 level, which includes the 50% Fibonacci retracement and the prior monthly high, is required.
However, a break below the 0.6275 support on the downside may soon push AUD/USD prices down into the year’s low under 0.6170.
The 61.8% Fibonacci Expansion (FE) of the pair’s movements between September 13 and October 27, or 0.6060, will be the subject of attention after that.
GBP/USD maintains its climb over 1.1200 amid upbeat market sentiment and US NFP hype
After overcoming the round-level resistance of 1.1200 in the Tokyo session, the GBP/USD pair has gained fresh gains. The Cable has moved back up from 1.1150 after losing its downward momentum. Investors are brushing off uncertainties in front of the US Nonfarm Payrolls (NFP) report, which is turning the risk impulse positive.
The US dollar index (DXY) has fallen below 112.60 after failing to overcome the critical threshold of 113.00. The S&P500 futures have seen a little comeback after trading in a range. While falling to 4.14%, the 10-year US Treasury rates have given up most of their gains.
After the Bank of England (BOE) announced a rate increase of 75 basis points on Thursday, the bulls in the pound saw a sharp decline (bps). The decision was still in line with expectations, but BOE Governor Andrew Bailey’s remarks on the UK’s recession caused the Sterling to decline. The BOE Governor acknowledged that the UK economy is in a recession and may extend two years longer than was typical during the subprime crisis.
The recessionary environment suggests a slowing of economic activity. Therefore the BOE will be restrained from raising interest rates further. This may cause the Federal Reserve’s (Fed) and the BOE’s policy divergences to grow.
USD/CAD falls below 1.3700 for the first time in three weeks ahead of US NFP and Canadian employment data.
The USD/CAD registers its first intraday loss in seven days as it benefits from the broad US dollar decline and a somewhat upbeat market tone. However, early on Friday morning in Europe, the Loonie pair accepts offers to retest the daily low at 1.3680.
The US Dollar Index (DXY) does, however, pull back from a two-week high to reduce the highest weekly advance in seven weeks, revisiting an intraday low around 112.60 by the time of press.
The recent declines in the dollar value may be related to expectations for good news about the conflict between Russia and Ukraine when German and Chinese leaders meet. Additionally, the efforts of the People’s Bank of China (PBOC) to protect the Chinese Yuan (CNY) combine with the pre-data consolidation to reinforce the risk-on attitude.
It should be mentioned that the recent strengthening of the price of crude oil, Canada’s principal export, has also impacted the USD/CAD. Currently, WTI crude oil is up 1.25% intraday at $88.45.
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