EUR/GBP is set to hold support at 0.8530/11 for a retest and break above 0.8722/47. What’s more, analysts at Credit Suisse expect the pair to enjoy an eventual rise toward the “neckline” and the 2020 top at 0.8861/76.
Broader basing process stays seen as underway .“We continue to view weakness as corrective. Above 0.8638/45 can add weight to our view for strength back to 0.8671/73, ahead of a retest of 0.8722/47. Beyond here in due course should then add weight to our view a broader basing process is underway with resistance seen next at the ‘neckline’ to the 2020 top and 61.8% retracement at 0.8861/76.”
“Below 0.8511 would see the uptrend break, but only below 0.8489/81 though would be seen to suggest the broader trend is shifting neutral again, with support seen next at 0.8457/43.”
EUR/USD plummets below 1.0500 as dollar gathers momentum
EUR/USD trades around 1.0450, giving up most of its post-Fed gains. FOMC Chairman Jerome Powell reiterated on Friday that they are “acutely focused” on returning inflation to 2% and the US Dollar Index was last seen rising 0.7% on the day.
GBP/USD drops below 1.2200 amid renewed USD strength
GBP/USD has extended its daily slide and declined below 1.2200 on Friday, erasing a large portion of the BOE-inspired rally. Following the two-day slump, the dollar continues to gather strength ahead of the weekend, forcing the pair to stay on the back foot.
Gold struggles to gain traction, stays below $1,850
Gold is having a difficult time making a decisive move in either direction ahead of the weekend and fluctuating in a relatively tight range near $1,850. The benchmark 10-year US T-bond yield moves sideways near 3.2%, allowing XAU/USD to stay in the consolidation channel.