EUR/USD and GBP/USD decline, as USD/JPY remains rangebound
EUR/USD and GBP/USD turn lower, with potential bearish breakdowns coming into play. Meanwhile, USD/JPY provides opportunity through its consistent rangebound price action.
EUR/USD breaks below key support
EUR/USD has managed to break from the wider trend of lower highs and higher lows, with the decline through $1.0768 support providing a bearish breakdown signal.
The short-term trend is clearly bearish and thus it is a case of following that intraday trend. With that in mind, a bearish outlook is in play, with a break through $1.0847 required to negate that view.
GBP/USD rolling over after Fibonacci rebound
GBP/USD has been on the rise since finding support on the 76.4% Fibonacci support level on Tuesday. However, we are seeing the short-term bearish trend come back into play as the pair turns lower from a confluence of horizontal ($1.2408) and Fibonacci (61.8%) resistance.
Ultimately, we need to see the $1.2166 level broken to negate the wider uptrend that has been playing out since the 19 March low. However, with the pair heading lower, a break below $1.2247 goes a long way to signaling the potential for such a critical bearish breakdown.
USD/JPY consolidates as we await a breakout
USD/JPY has been in consolidation mode over the course of the week, with the pair trading within the ¥1.0808-¥1.0728 range. That formation continues to hold, yet the break from it will tell us plenty about where we go from here.
With the pair repeatedly coming back to the ¥1.692 level of support, a downside breakdown would also necessitate a move through that support level to bring a wider bearish view. In any case, until we see a breakout, this range provides us with a relatively consistent trading environment to utilise.
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