EURUSD traded higher amid broad-based Dollar weakness. The Euro extended its third gaining day and traded 0.3% higher against the U.S. Greenback. Fed chair Jerome Powell’s testament on Wednesday added selling pressure on the U.S. Dollar. Chairman Powell iterated that he would not leave a larger magnitude of interest rate hikes off the table as the central bank continues its effort to tame inflation. The EU leaders will be gathering on the 23rd to examine the current economic and geopolitical situations of the Eurozone.
On the technical side, EURUSD has edged above our previously estimated resistance level and 1.05483, but still faces strong selling pressure near this price level. RSI for the pair sits at 48.6, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1.05483, 1.06315
Support: 1.04036, 1.03783
GBPUSD traded lower slightly despite a weaker U.S. Dollar. Market participants are alarmed by the British CPI data, which rose by 9.1%, year over year, marking its largest jump in 40 years. The BoE’s efforts to tame inflation seem to have minimal effect on the actual inflation rate. On the 23rd, Britain will release its key PMI figures, which will further price information for companies. Wednesday’s drop in Cable could not be offset by a broader-based weakness of the U.S. Greenback.
On the technical side, GBPUSD remains depressed below our previously estimated resistance level of 1.239, while support levels at 1.2173 remain firm. RSI for Cable sits at 52.18, as of writing. On the four-hour chart, GBPUSD currently trades above its 50-day SMA, but below its 100, and 200-day SMA.
Resistance: 1.25944, 1.239
Support: 1.2173, 1.20824
USDJPY has plateaued near the 136 price level as the U.S. Dollar loses demand over the past couple of days. A pull back on the U.S. 10-year Treasury yield has helped the Japanese Yen gain steam against the U.S. Dollar. Since the beginning of April, the Japanese Yen has fallen more than 12% against the U.S. Greenback, further depreciation of the Japanese Yen could pose fundamental threats to the currency; however, with chairman Jerome Powell’s testament last night, the interest rate difference between the U.S. and Japan only seems to be growing.
On the technical side, USDJPY has met fresh resistance at around the 136.28 price region. USDJPY still seems to be on a steady upward trend despite stalling around 136 for the past couple of days. RSI for the pair has dropped out of the overbought territory and currently sits at 59.5. On the four-hour chart, USDJPY is trading above its 50, 100, and 200-day SMA.
Support: 133.5, 132.5
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