EUR/GBP Price Analysis: Clears the 20/50-DMA with bulls eyeing 0.8900.The EUR/GBP path of least resistance is upward biased after clearing important technical levels.
The pair is testing a minor resistance trendline, which, once broken, would send the EUR/GBP toward 0.8900.EUR/GBP Price Analysis: Upward biased and could test 0.8900.
The EUR/GBP climbs and cracks the 50 and 20-day Exponential Moving Averages (EMAs) on Monday as the Pound Sterling (GBP) weakens. Additionally, the EUR/GBP bulls are eyeing to break March’s monthly high of 0.8896 to test the 0.8900 figure. At the time of writing, the EUR/GBP is exchanging hands at 0.8880 after hitting a low of 0.8820.
EUR/GBP Price action
On Monday, the EUR/GBP 50 pip gain dragged the pair towards a one-month-old resistance trendline that passes around the 0.8860/80 range, which, if broken, would exacerbate a test of the 0.8900 mark. Nevertheless, March’s 1 high of 0.8896 would be the first resistance to be tested before claiming the former.
If the EUR/GBP breaks 0.8900, the next resistance would be the February 20 high of 0.8928. A breach of the latter and the 0.8950 would be next, followed by the YTD high of 0.8978.
The path of least resistance is upwards, as the Relative Strength Index (RSI) confirmed, with the RSI at bullish territory, aiming toward higher readings. Although near the neutral area, the Rate of Change (RoC) suggests that buyers are still in control.As an alternate scenario, if the EUR/GBP drops below the 220-day EMA at 0.8840, that would pave the way to the 50-day EMA at 0.8816, ahead of 0.8800.
EUR/USD climbs toward 1.0700 as risk mood improves
EUR/USD has gathered bullish momentum and advanced toward 1.0700 in the second half of the day on Monday. In the absence of high-tier data releases, the positive shift witnessed in risk sentiment is weighing on the US Dollar and allowing the pair to climb higher.
GBP/USD stays in daily range above 1.2000
GBP/USD has managed to erase its daily gains after having tested 1.2000 in the European session on Monday. The renewed US Dollar weakness following Wall Street’s opening bell helps the pair keep its footing ahead of FOMC Chairman Powell’s testimony on Tuesday.
Gold fluctuates at around $1,850 despite USD weakness
Gold price is finding it difficult to gain traction in the American session on Monday and extending its sideways grind at around $1,850. Although the US Dollar stays under modest selling pressure, the recovery witnessed in the 10-year US T-bond yield limits XAU/USD’s upside.
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