The euro continues to push higher towards 1.1500, breaking above the 100 day MA for the first time since May last year. The 1.1200 area is now likely to act as a key support area for further gains, Michael Hewson Chief Market Analyst at CMC Markets noted.
Other remarkable comments from Mr. Hewson about currencies:
GBPUSD – after finding support at 1.5090 earlier this week the pound has managed to rebound but is still below the 1.5500 resistance we saw last week. We need to hold above 1.5220 to push on otherwise we could be at risk of a fall back towards 1.5000.
EURGBP – we found support at the 0.7320 area earlier this week. This is set to remain key support for further gains towards 0.7540, now that we have broken above the 0.7420 level and last week’s high.
USDJPY – the failure to overcome the 120.70 level has seen the US dollar slide back but it looks currently range bound with strong support just above the March lows at 118.30, while at the same time the rebounds keep getting shallower. We need to see a break above 120.70 to mitigate the downside risk of a move towards 116.50.
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