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Dollar strength remains key consideration for EUR/USD, GBP/USD, and USD/JPY

Dollar strength a key theme for EUR/USD, GBP/USD and USD/JPY, with US economic outperformance stifle bearish sentiment for the greenback.

EUR/USD falling back after rally into prior support

EUR/USD has turned lower from the $1.2109 resistance level yesterday, with the pair looking set to follow up on the bearish sentiment set when the pair broke below $1.2023 on Tuesday. That move points towards the potential for another bearish phase to come into play for the pair.

However, it is worthwhile noting the prior break up through $1.219 brings both bearish and bullish signals. As such, while we are seeing the pair move lower this morning, the recent consolidation around $1.2058-$1.219 means there is a good chance we are preparing for a move higher to continue that indecisive theme.

GBP/USD attempts to rebuild after latest pullback

GBP/USD has been consolidating since the recent sharp pullback which took us within touching distance of the key $1.383 support level. A break below that point would bring a wider bearish picture into play, negating the intraday uptrend that has been in play over the past month.

Nevertheless, with price having moved up through the $1.3999 resistance level yesterday, there is a good chance this current move lower is a case of the pair gathering momentum for the next push higher. As such, a bullish outlook holds until we see price break the $1.383 support level.

USD/JPY drives higher as PMI surveys highlight US strength

USD/JPY continues to trend higher, with yesterday’s purchasing managers index (PMI) surveys highlighting the ongoing economic outperformance of the US.

That uptrend looks likely to persist as we move forward, with a break back down below the ¥106.67 level required to signal a wider retracement phase coming into play. ​

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