EUR/USD and GBP/USD fall but USD/JPY rallies
The dollar is in strong form this morning, rallying against the euro, sterling and the Japanese yen.
EUR/USD edges lower after Wednesday’s losses
EUR/USD suffered heavily yesterday and despite a rebound overnight is slipping lower once again this morning.
Yesterday’s drop carried the price to the support zone around $1.094, where bounces materialised in September, so we may see some bullish momentum develop here. However, the downtrend is firmly in place, and as a result a move below $1.092 would carry the price below this support zone and target $1.085, the low from May 2017.
GBP/USD under heavy pressure
GBP/USD has continued its reversal from $1.25, falling below $1.24 yesterday.
As with EUR/USD, the price rebounded slightly overnight, but is losing ground once again as the longer-term downtrend reasserts itself. Further declines head towards $1.227, and then on towards $1.20. A move back above $1.25 is needed to reassert the bullish view.
USD/JPY recovers its upward momentum
After several days of declines USD/JPY rebounded yesterday, stabilising around the 50-day simple moving average (SMA) of ¥107.06. If this can form a higher low, then a push above yesterday’s high will reinforce the bullish view and take the price on towards ¥108.40.
Bears will want to see a move below ¥107.50 in the short term, to revive the push towards ¥107.00 and revive the pullback that began at the end of last week.
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