Jump to content

EUR/USD rise crippled by strong US inflation data, EUR/GBP and GBP/JPY weaker


Recommended Posts

EUR/USD, EUR/GBP and GBP/JPY under pressure post 40-year high in US inflation.

 

EUR/USD once again weighs on its support line and is likely to slide further

Yesterday EUR/USD briefly shot up to a three-month high at $1.1495 before US consumer price index (CPI) data came in well above market forecasts of 7.3% at a 40-year high of 7.5% in January of 2022, reversing the currency pair’s uptrend.

EUR/USD thus did a fourth ‘return to point of breakout’ in as many days by slipping to the breached 2021-to-2022 downtrend line and 20 January high at $1.1389 to $1.1369. In case of further downside being witnessed, the 55-day moving average (MA) at $1.1326 would be targeted.

The January and current February highs at $1.1482 to $1.1495 now offer solid resistance.

EUR/USD chartSource: IT-Finance.com

EUR/GBP is likely to decline further still

EUR/GBP now trades below the 55-day simple moving average (SMA) at £0.8424 with it slipping back towards the £0.84 mark and the November trough at £0.8381 on slightly better than expected UK month-on-month gross domestic product (GDP) and industrial production data.

Immediate resistance can be spotted at the £0.8422 late January high and above it at the mid-January £0.8454 low.

EUR/GBP chartSource: IT-Finance.com

GBP/JPY rally stalls at the October peak

Yesterday GBP/JPY broke through its four-month resistance line at ¥157.55 and briefly rose above the January peak at ¥157.77, close to the October high at ¥158.22 which provoked failure, though.

Despite today’s pullback, the late January uptrend remains intact. A rise above the October high at ¥158.22 would push GBP/JPY to a 5 ½ year high and open the way for major resistance at ¥162.61 to ¥163.87 to be reached. It encompasses the June and August 2009 highs, February 2014 low and the March as well as May 2016 highs and as such may stall the advance when first tested.

Overall bullish pressure should be maintained, while the early February high and one-month support line at ¥156.51 to ¥156.05 underpin.

GBP/JPY chartSource: IT-Finance.com

Axel Rudolph | Market Analyst, London
11 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
      21,599
    • Total Posts
      91,798
    • Total Members
      41,861
    • Most Online
      7,522
      10/06/21 11:53

    Newest Member
    MarkBerg
    Joined 21/03/23 08:13
  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, 21 March 23,   Ethereum/U.S.dollar(ETHUSD) ETHUSD Elliott Wave Technical Analysis  Function: Follow trend Mode: Motive Structure: Impulse Position: Wave III Direction Next higher Degrees: wave (I) of Motive Details: Wave 3 equals 1.618 multiplied Length of wave 1 at 2943.53 Wave Cancel invalid level: 1073.42 Ethereum/U.S.dollar(ETHUSD)Trading Strategy: Ethereum resumes its upward trend in wave III with a chance to reach the 161.8 level of wave I at 2943.53. Also, the price has risen above the MA200 line, giving the view to a continued upward trend in wave III. Ethereum/U.S.dollar(ETHUSD)Technical Indicators: The price is above the MA200 indicating an UpTrend. The wave oscillators above Zero-Line momentum are bullish. TradingLounge Analyst: Kittiampon Somboonsod, CEWA     Elliott Wave Analysis TradingLounge 4H Chart, 21 March 23,   Ethereum/U.S.dollar(ETHUSD) Elliott Wave Technical Analysis Function: Follow trend Mode: Motive Structure: Impulse Position: Wave (3) Direction Next higher Degrees: wave ((3)) of Motive Details: Wave 3 equals 1.618 multiplied Length of wave 1 at 2290 Wave Cancel invalid level: 1369 Ethereum/U.S.dollar(ETHUSD)Trading Strategy: Ethereum resumes its upward trend in wave (3) with a chance to reach the 161.8 level of wave (1) at 2290. Also, the price has risen above the MA200 line, giving the view to a continued upward trend in wave (3). Ethereum/U.S.dollar(ETHUSD)Technical Indicators: The price is above the MA200 indicating an UpTrend. The wave oscillators above Zero-Line momentum are bullish.
    • Content Bitcoin BTC/USD Summary 28,000, 30,000 and 33,000 are the resistance levels that fit in the Elliott Wave count. The current move up is in line with the bear market rally Elliott wave count I have for the NASDAQ that is also looking for a top around the 13,000. I suggest trading to these levels and exit and wait for the next set up either long or short. Elliott Wave I don't know if we are in a bullish market or a bear market rally Strategy: Trade to 30,000 and exit long trade Analyst Peter Mathers TradingLounge™   
    • Stock Market Daily Report: SP500, AAPL, TSLA, AMZN, NVDA, MSFT, META, NFLX, GOOGL, BAC 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 and Bank of America BAC. Stock Market Summary: Day Traders stay long and Positions traders - we will be looking for the short trade set ups later in the week once I can confirm the top Elliott Wave Analysis: Waves fours and fives to top around Wed when the FOMC  Feds Funds Rate Trading Strategies: Day traders can continue to  trade higher Video Chapters 00:00 SP500 / NASDAQ 100 10:19 Apple (AAPL) 15:17 Amazon (AMZN) 19:23 NVIDIA (NVDA) 25:29 Meta Platforms (META) 30:46 Netflix (NFLX)  31:48 Enphase (ENPH) 36:30 Alphabet (GOOGL)  38:01 Microsoft (MSFT) 39:03 Berkshire Hathaway (BRK.B) 42:12 Tesla (TSLA) 44:18 Block Inc. (SQ)  46:48 Bank of America BAC 52:16 Thanks for supporting Analyst Peter Mathers TradingLounge™     
×
×
  • Create New...