EUR/USD and GBP/USD fall as USD/JPY climbs
Dollar strength has seen EUR/USD and GBP/USD drop back, while USD/JPY continues to make gains, pushing back towards last week’s peak.
EUR/USD pushes lower
The EUR/USD pair continues to drop back from last week’s highs, and while it has rallied off $1.172 support, it is still below trendline resistance from last Thursday’s peak.
Below $1.172 the price could also find support at $1.17. A rally through $1.175 would mark a more bullish development, clearing the way for a recovery of recent lost ground.
GBP/USD stable after employment data
While the UK’s economic position worsens, the pound has held its ground against the US dollar. Dips towards $1.301 yesterday found buyers for GBP/USD, as they did on Friday.
Trendline resistance from Thursday’s high has held back progress; a rally through $1.311 would mark a break higher, while bears will want to see a drop below $1.298 to clear the recent zone of resistance.
USD/JPY continues to climb
The price of USD/JPY has maintained its general move higher over the past few days, reversing the weakness seen earlier in August.
The next target to the upside is ¥106.40. A reversal below ¥105.70 is needed to provide a more bearish view.
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