After hitting a multiyear low just above 0.5500 on March 19, AUD/USD has formed a higher low in the 0.5720 area.
EUR/GBP ahead of the BoE meeting
Information is not investment advice
EUR/GBP has so far been one of the most volatile currency pairs. It rose to 2-year highs and the ascent was fast. Daily oscillators show bearish divergence and indeed a correction took place yesterday: a bearish “engulfing” candlestick appeared on D1.
The upcoming meeting and press conference of the Bank of England (BoE) promise further moves of the exchange rate. There’s scope for more correction, so a decline below the Wednesday’s low at 0.9089 will open the way down at least to 0.9050 (July 17 high). Notice that the ultimate support is at 0.8950 (bottom of the bullish channel).
At the same time, the dovish Bank of England may weaken the GBP once again bring the pair back to the channel’s top. A rise above 0.9130 will make the pair rise to 0.9180.
GBP/USD retraced more than 78.6% Fibonacci of the 2019 advance. Last week was the worst for the pair since the Brexit referendum.
CAD/JPY recovered last week to the 78.00 area (38.2% Fibonacci of the February-March decline), but then turned down again getting back below the 50-period MA on the H4.
As today is the last day of the first quarter, let’s look at the performance of the major currency pairs and analyze what may come next for them.
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