EUR/USD and GBP/USD rally while USD/JPY edges lower

Sterling is bouncing in the short term, while the euro is fighting to hold $1.12.

EUR/USD bounces from $1.12

EUR/USD continues to rally from $1.12, as this level is still holding as support. Gains have stalled at $1.128, so a move above this level is needed to open the way to $1.132 and the 200-day simple moving average (SMA).

Trendline resistance from the June high would be found at $1.125, providing another hurdle to a break higher. Bears need to push the price below $1.12 to start a deeper pullback, targeting $1.112.

GBP/USD recovers from lower low

GBP/USD has rallied off its lows over the past 24 hours, but the overall downtrend is still firmly in place.

A rebound towards $1.26 would challenge the peak from earlier in the week, and then provide another possible selling opportunity. This would also take the price back to trendline resistance from the May peak. The bearish view likely remains in place until the price moves back above $1.262.

USD/JPY bounces from support

USD/JPY’s dips to ¥107.60 continue to find support, as we have seen so far today.

The price is also in a possible bullish wedge, with a slowing pace of declines seen over the past week. A rally to ¥108.10 would hit trendline resistance from the 11 July high. Below ¥107.50, the price heads towards ¥106.80.

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