The rallies in EUR/USD, GBP/USD, and AUD/USD persist as U.S. President Donald Trump grants a one-month exemption for domestic automakers from new tariffs on imports from Mexico and Canada. The announcement has fueled optimism in the foreign exchange market, with key currency pairs extending their gains.
EUR/USD Strengthens Above Key Support
The EUR/USD pair has surged past the 200-day simple moving average (SMA) at $1.0721, which now acts as a support level. This upward movement positions the pair toward its next major target—the November peak at $1.0936—while the psychologically significant $1.1000 level remains within reach.
GBP/USD Climbs Toward $1.3000
GBP/USD has also advanced above its 200-day SMA at $1.2785, solidifying it as a new support level. The pair now eyes the 23rd October low at $1.2910, with the key $1.3000 resistance zone in sight. Additional minor support levels lie at $1.2729, the mid-December high, and $1.2716, the late February peak.
AUD/USD Extends Recovery
The AUD/USD pair continues its rebound from Tuesday’s low of $0.6187, breaking above the 6th January high of $0.6302 and reaching as far as $0.6356. Further upside potential points toward the February high at $0.6408, while minor support is visible around the $0.6330 January peak and the $0.6302 early January high.
The sustained rally in these major currency pairs highlights the market’s positive response to trade developments, with traders closely monitoring key resistance and support levels.
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