Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
EURUSD has spiked above the 0.382 retracement at 1.0865 to the 55 daily Moving Average. If EURUSD can close above 1.09 a new uptrend has been established.
EURUSD is currently trading above both the 100 and 200 DMA which are both rising suggesting the underlying trend is turning bullish
An RSI close above 60 threshold would confirm that and support further upside potential to 1.10 .
If EURUSD is sliding back to below upper falling trendline the pair is likely to resume down trend with potential down to around 1.0660
GBPUSD is trying to break bullish out of its 1.27-1.25 range bound trading. A close above 1.27 will push GBPUSD to test strong resistance at around 1.2775 with a likely move to 1.2825
If GBPUSD is failing to close above 1.27 it is likely to be stuck range bound for quite some time.
RSI is testing the 60 threshold and a close above will support the bullish scenario