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EUR/USD, GBP/USD, and USD/JPY awaiting consolidation break

The dollar is coming under pressure this morning, but how will EUR/USD, GBP/USD, and USD/JPY resolve recent consolidation?

EUR/USD building on rebound from key support

EUR/USD is on the rise in early trade today, with the pair seeking to build on the rebound from $1.199 support yesterday. That level of support represented not only a key March high, but also the neckline of a potential head and shoulders formation building over the past two weeks.

The rise through $1.2076 highlights the resurgence that appears to be building, with a push through $1.2051 needed to further that bullish story. Until then, we remain within a potential reversal zone given the existence of the 76.4% Fibonacci level at $1.2116. Whether we break through $1.215 (bullish) or below $1.199 (bearish) should better inform sentiment for this pair.

GBP/USD rising towards trend line resistance

GBP/USD remains within a consolidation phase, with the overnight gains seen in the pair coming as part of a move that has seen price drift lower from the $1.4006 level.

That recent descending channel remains key, with trend line resistance coming into play from here. Ultimately, we will need to see the pair break through either $1.4006 of $1.367 to build a clearer picture of the directional bias.

USD/JPY starts to roll over from Fibonacci resistance

USD/JPY has been on the rise of late, with the pair attempting to regain ground lost throughout much of April. That decline took us below ¥108.34, raising the likelihood that this current rally is a retracement and precursor to us heading lower once again.

With the price starting to roll over from the 61.8% Fibonacci resistance level, there is a good chance we are going to see the bears come back into play. A break below the ¥108.89 swing low would raise the likelihood of that bearish break coming into play. Until then, the intraday uptrend remains intact.

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