EUR/USD, GBP/USD and USD/JPY expected to weaken further
EUR/USD, GBP/USD, and USD/JPY expected to weaken further, with risk-off sentiment taking hold after a muddled US election outcome.
EUR/USD weakens once again despite recent gains
EUR/USD has tumbled off the back of an election which could ultimately end in a host of legal battles. The risk-off sentiment that has subsequently started to take hold has brought about a fresh move lower for this pair.
That has taken the pair back into a fresh three-month low overnight, with the price starting to tick higher since then. As such, while we could see further short-term gains, the wider bearish picture remains in play unless we see a break through the $1.1771 overnight high.
GBP/USD falls back towards key support
GBP/USD has seen significant losses from the 61.8% Fibonacci resistance level of $1.3174. While we had seen the pair rise into the US election, we have since seen a risk-off move into the dollar to spark downside for the pair.
A break below the $1.2855 level would bring about a fresh bearish signal for this pair, following a period of strength that lasted most of October. As such, the outlook for GBP/USD will be determined by whether we see a break below the $1.2855 level or not.
USD/JPY at risk of further downside after rally into trendline
USD/JPY has been gaining ground over the course of the past week, with the pair pushing towards into a confluence of trendline and Fibonacci resistance.
That ¥105.34 level is going to be crucial from here, with the wider bearish trend expected to come back into play once again. A break through the ¥105.75 level would be required to negate that bearish outlook.
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