EUR/USD and GBP/USD feel heat from stronger US dollar, while USD/JPY holds around ¥109
GBP/USD is on the back foot this morning while USD/JPY ponders its next move after a huge rally.
EUR/USD mixed in early trading
The buyers seem to have handed back control to the sellers in this EUR/USD pair, as the gains of last week are given back and the attempt to recover $1.20 fizzles out.
The 200-day SMA at ($1.1837) is now in sight once more, and buyers will be hoping it can hold as it did a week ago. Sellers will be looking for a push below this that then brings $1.1612 into view over the course of time. A rally back above Friday’s high at $1.1986 is needed to put the pair back on an upward course.
GBP/USD reversal in progress
In cable too the bounce of last week is now a distant memory, and the 50-day simple moving average (SMA) ($1.3797) is likely to be tested as dollar strength pushes the GBP/USD pair lower.
This then brings the $1.37 area into view once again, while below this the $1.35 zone is the next area to watch for possible support. The buyers seem to have lost the upper hand here, and will need to get the price back above $1.40 to reverse this growing bearish short-term view.
USD/JPY holds firm around ¥109
The USD/JPY pair shrugged off last week’s temporary drop and has continued to hold above steep trendline support from the late February-low.
Further gains take it on towards ¥109.50, but it must be wondered how long this sharp ascent can continue. Nonetheless, the price is providing little indication of any reversal as yet, with the buyers still firmly in control. A move back below ¥108.50 is need to provide an indication of a bigger retracement.
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