Jump to content

EUR/USD and GBP/USD await US CPI data, EUR/GBP side-lined

Recommended Posts

EUR/USD, EUR/GBP and GBP/USD continue to be short-term side-lined ahead of key US CPI data.



EUR/USD recovers from breached resistance line, now support line

EUR/USD’s retracement from its January and early February highs at around $1.1483 did a ‘return to point of breakout’ by slipping back to the breached 2021-to-2022 downtrend line, now because of inverse polarity a support line at $1.1392, before stabilising above it.

Slightly further down the late November and December highs at $1.1386 to $1.1382 may act as additional support as well as the mid-point of Thursday’s long ‘body’ of its candle at $1.1368 ahead of today’s US consumer price index (CPI) data. The ‘body’ shows the distance between the open and the close of a candle.

The January and current February highs at $1.1382 to $1.1383 will need to be exceeded for EUR/USD to continue its ascent towards the next higher October and 5 November lows at $1.1513 to $1.1529.

EUR/USD chartSource: IT-Finance.com

EUR/GBP is side-lined

EUR/GBP continues to oscillate around the 55-day simple moving average (SMA) at £0.8425, having found minor support at £0.8413 over the past couple of days.

While this level underpins, resistance above Monday’s high at £0.8478 may be revisited and perhaps also the 2020-to-2022 downtrend line at £0.8486 and even the 200-day SMA at £0.8512.

A slip through the £0.8413 low would probably lead to a tumble back towards the November trough at £0.8381 being seen.

EUR/GBP chartSource: IT-Finance.com

GBP/USD still hovers above minor support ahead of US CPI data

GBP/USD saw a minor retracement from its early February high at $1.3628 to the mid-November high, 38.2% Fibonacci retracement and 6 January low at $1.3513 to $1.349 from where it recovered. Further sideways trading is expected to be seen whilst awaiting US CPI readings later today.

For now, yesterday’s high, two-month downtrend line and 61.8% Fibonacci retracement at $1.3589 to $1.3599 are expected to put a lid on the cross. Slightly above this resistance sits the recent $1.3628 high.

Only a slip through Monday’s $1.349 low would have bearish implications and would push the $1.3442 to $1.3431 support zone to the fore. It consists of the early and late January lows and the 55-day SMA. Further down lies the January trough at $1.3359.

GBP/USD chartSource: IT-Finance.com

Axel Rudolph | Market Analyst, London
10 February 2022
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 09/02/23 00:02
  • Posts

    • Stock Market Content: SP500, Apple (AAPL),Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft MSFT, Berkshire Hathaway (BRK/B), Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Summary: Wednesday and Thursdays swing day in Bullish weekly cycle Elliott Wave Analysis: SP500 and NASDAQ Wave (iv) completed with Wave (v) of v) of 1 upwards in the next session Trading Strategies:Cautious of short term top approaching  Video Chapters 00:00 SP500 / DXY 07:23 Apple (AAPL) 10:46 Amazon (AMZN) 13:06 NVIDIA (NVDA) 15:32 Meta Platforms (META) 16:30 Netflix (NFLX)  20:43 Enphase (ENPH) 24:45 Tesla (TSLA) 27:12 Alphabet (GOOGL)  33:20 Microsoft (MSFT) 35:41 Berkshire Hathaway (BRK.B) 38:34 Block Inc. (SQ)  39:26 Bank of America BAC 44:10 TRIAL Buy 1 Month Get 3 Months  Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • thanks Andy, will checkout your Excel Add-In (but a bit later, as I have to clear a few things first)  
    • Look Ahead to 09/02/23: US Initial jobless claims; AZN, ULVR, LYFT earnings Hot on the heels of surprisingly strong US jobs numbers, we get initial jobless claims data. AstraZeneca’s (AZN) pipeline will be in focus. Plus, Unilever (ULVR) Credit Suisse (CSGN) and Lyft (LYFT) also report. Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Wednesday 08 February 2023          
  • Create New...