Dollar weakness pauses for EUR/USD, GBP/USD and USD/JPY
Dollar weakness helps lift EUR/USD and GBP/USD, as USD/JPY attempts to recovery from a near eight-month low.
EUR/USD rises into key resistance
EUR/USD has managed to push into the key $1.1880-$1.1917 resistance zone today, following a rally from the bottom of a two-month range.
That consolidation seen since early-September highlights the possibility we will see the pair turn lower from this notable area of resistance. As such, the ability to break through the $1.1917 level will be key in signaling the potential for another phase of upside from here.
GBP/USD hits two-month high
GBP/USD has similarly managed to breach resistance to bring about a fresh two-month high.
That builds on the uptrend that has been playing out since the September lows of $1.2675. As such, the ability to remain above this $1.3177 level is key in driving further upside over the near-term. However, with a clear pattern of relatively deep retracements, a break below the $1.3092 level would signal another pullback of the rally from $1.2861.
USD/JPY seeks to steady itself after sharp decline
USD/JPY saw sharp losses over the course of last week, with the pair dropping into the lowest level in almost eight months.
The wider downtrend remains intact, pointing towards the potential for further downside. However, with such an extended move lower, there is a chance we could enter a more substantial upward retracement phase. As such, a break back below the ¥103.17 would bring a fresh bearish signal, with the pair showing the potential to regain ground over the short term until then.
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