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Dollar strength driving EUR/USD and USD/JPY, while GBP/USD gains ground

A mixed affair for EUR/USD, GBP/USD and USD/JPY, with the pound attempting to outperform amid recent dollar strength.

EUR/USD turns lower from horizontal resistance

EUR/USD has been weakening after a rally into the key $1.1992 resistance level, raising the risk of another leg lower for the pair.

We have seen plenty of downside over the course of 2021 thus far, and there is a strong chance we will see further weakness to come despite this recent rally. A decline through the $1.191 level would help build that bearish picture from here, with a chance of another deeper upside retracement coming into play if the price breaks through the $1.1967 level.

GBP/USD on the rise from SMA support

GBP/USD is on the rise after a decline into the 200-day simple moving average (SMA), with the price rising back towards the crucial $1.3999 to $1.4017 resistance zone.

A break up through that resistance zone would complete an inverse head and shoulders formation, bringing the wider bullish trend back into play once again. Until that upside break occurs, we are looking at the possibility that short-term gains start to slow at that resistance zone.

USD/JPY attempting to break from its recent consolidation phase

USD/JPY is easing back after a tentative push through resistance, establishing a brief nine-month high.

That uptrend looks likely to continue despite the current pullback, with a drop below the ¥108.33 support level required to negate this bullish view. Until then, short-term downside could be viewed as a better value entry into an impressive bullish trend.

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