EUR/USD and USD/JPY weaken, while GBP/USD moves sideways
The euro is still unable to rally against the dollar, and after a spike on Monday cable continues to move sideways.
EUR/USD still unable to rally
While declines have slowed over the past few days, the EUR/USD pair is still unable to rally and hold above the 50-hour simple moving average (SMA).
Over the past few sessions, rallies to this indicator have run out of steam. Any sustained rebound has to move above this and hold above it. For now, that has yet to happen, and thus rallies remain possible selling opportunities. Further declines head to the September low below $1.09.
GBP/USD moves sideways
This week has seen the bulls and bears struggle to establish mastery over the GBP/USD pair.
Monday’s bounce has not been followed up by fresh higher highs and higher lows, although dips towards $1.282 have found buyers. A break above trendline resistance from the Monday highs, ie above $1.285, would be a bullish development and mark a rise in upward momentum. Meanwhile, a more bearish view requires a push below $1.282 and then through the $1.277 low from Monday.
USD/JPY drifts towards support
The USD/JPY pair continues to push towards rising trendline support from the August low.
If the price breaks below ¥108.50 then a more bearish view would result. The bearish divergence with daily stochastics would suggest such a view may gain momentum. Intraday lower highs have been seen all week, so a rebound above ¥109.20 is needed to revive a more bullish view. Below ¥108.50, the price heads towards ¥108.00 and then down to ¥107.00.
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