EUR/USD and GBP/USD stall as USD/JPY continues to head lower
Rallies in EUR/USD and GBP/USD have run out of steam, but the rapid downward move in USD/JPY shows no sign of stopping.
EUR/USD looks to reverse Wednesday weakness
EUR/USD edged back from $1.19 over the past two days, with a downward move in yesterday’s session.
A reversal back above $1.19 would be the starting point of a more bullish move that could see the $1.20 level tested. Alternatively, we look for a modest retracement towards $1.175, with a more bearish view taking us back towards $1.16 and the lower bound of the range that has prevailed for the past four months.
GBP/USD stalls below $1.33 again
GBP/USD’s push higher ran out of steam at $1.33 yesterday, as it did last week, providing an indication of further selling pressure from here.
A deeper move below $1.315 would raise the risk of a near-term double top, with a drop below $1.31 providing confirmation of this. A rally through $1.33 provides a new bullish catalyst and opens the path to $1.347 and the September high.
USD/JPY downtrend firmly back in play
Monday’s brief bounce is a distant memory, as USD/JPY heads back towards the month low at ¥103.20.
The longer term downtrend has reasserted itself this week with the reversal below the 50-day simple moving average (SMA) of ¥105.03 that created another lower high.
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