EUR/USD, GBP/USD and USD/JPY on the rise after Friday’s NFP disappointment
EUR/USD and GBP/USD on the rise thanks to easing haven demand for the dollar, although USD/JPY has pushed into multi-year highs despite Friday’s disappointing NFP release.
EUR/USD regaining ground although downtrend remains
EUR/USD has been regaining ground as haven demand eases for the dollar. The strength we are seeing here looks likely to represent a retracement phase set within a downtrend.
As such, near term we could see further upside, yet it makes sense to expect another turn lower unless the price breaches the $1.164 swing high. Until then, watch out for the bears to come back into play around the $1.1597 to $1.1614 Fibonacci resistance zone.
GBP/USD rallies into 76.4% Fibonacci level
GBP/USD has been on the rise over the course of the past fortnight, with the price rising back into the 76.4% Fibonacci resistance level. That level is being respected thus far, highlighting the potential for a bearish turn around here.
Keep an eye out for wider risk sentiment as a driver of dollar price action. However, until the price breaks through $1.375, there is a distinct risk that we see the bears come back into play before long.
USD/JPY pushes into 33 month high
USD/JPY has been surging higher once again today, with the rally through ¥1.1208 bringing about the next leg higher from the pair. This current surge will retrace at some point yet exactly when that happens remains to be seen.
For now, further upside does look likely, with any retracement needing to break back below the ¥110.82 required to bring about an end to this trend. Until that happens, any short-term period of downside looks to provide a potential buying opportunity.
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