EUR/USD suggesting that we could be gearing up for a rebound
The last time the euro posted 4 days in succession was over 12 months ago, suggesting that we could be gearing up for a rebound, said Michael Hewson, analyst at CMC Markets.
For the EUR/USD, last week’s break above 1.0760 and a subsequent move through 1.0800 could well see a move back to the range highs above 1.1000, he noted.
More comments on currencies by Mr Hewson:
GBPUSD – last week’s rebound could well a reversal in recent sterling weakness, with a bullish weekly reversal candle. While we weren’t able to sustain a move through the 1.5000 level last week pulling back from the 50 day MA, the fact we posted 5 successive positive days for the pound suggests, we could well retest the 1.5168 high seen in mid-March.
EURGBP – we managed to hold above the 0.7150 level last week, and as such we could get a rebound back through the 0.7235 area, towards 0.7280, with 0.7385 the main resistance level.
USDJPY – last week’s failure to push back through the 119.70 level has seen the US dollar slide back towards the March lows at 118.30. A move below 118.30 retargets the 116.50 level. We need to push back above the 120.70 level to retarget the highs at 122.00.