EUR/USD and GBP/USD pause within bearish breakdown, while USD/JPY starts to reverse lower
EUR/USD and GBP/USD pause after recent slump, while USD/JPY starts to reverse latest gains.
EUR/USD pauses after recent slump
EUR/USD has been hit hard over the course of the week, with the pair trading at the lowest level in 14 months.
We have seen little by way of bullish momentum thus far. Therefore, it makes sense to expect further downside to come. A rise up through the $1.1609 would be required to bring a more neutral short-term picture into play.
GBP/USD expected to fall further after recent declines
GBP/USD has similarly suffered sharp losses over the course of the week, with the pair hitting a nine-month low on Wednesday.
While the volatility has eased somewhat since then, the gains seen yesterday seem to have simply formed a 76.4% Fibonacci retracement. As such, further downside looks likely unless we see a break up through the $1.3555 resistance. A beak below $1.3411 brings greater confidence of another breakdown.
USD/JPY falls below support after period of sharp gains
USD/JPY has reversed lower towards the end of the week, with the pair moving into retracement mode following a period of sharp gains in the wake of last week’s Federal Open Market Committee (FOMC) meeting.
There is a risk of a deeper pullback given the decline through ¥111.20 support, yet any such downside would be viewed as a buying opportunity unless price falls through the ¥109.12 low.
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