Safe-haven dollar buying pushes down EUR/USD and GBP/USD, while USD/JPY holds below Y150
EUR/USD and GBP/USD reversed their Monday gains yesterday, and are struggling to move higher this morning. USD/JPY is still wary of moving above Y150.
EUR/USD suffers a reversal
The ongoing recovery reached the 50-day simple moving average (SMA) yesterday but EUR/USD suffered a sharp reverse on Tuesday.
A close back below $1.052 would hand the initiative to the sellers once again and signal that a new leg lower could be in the works. This might then see the price head towards $1.045, or even towards the $1.35 level.
A close back above $1.07 would signal that the bulls have wrested control again, though the medium-term bearish view remains in place.
GBP/USD under pressure again
The price reversed from trendline resistance on Tuesday, putting GBP/USD on a short-term recovery under pressure.
Further losses below $1.21 would confirm the bearish view and suggest that the price had resumed the medium-term downtrend. This is reinforced by the declining 50-day SMA and its move below the 200-day SMA.
A close above trendline resistance from the July highs would be needed to hand the buyers the short-term advantage.
USD/JPY moves sideways below ¥150
There continues to be little movement here with USD/JPY, the price is unable to close above ¥150.
Bullish momentum has stalled in recent weeks. The price shows little desire to move above ¥150, given that this might incite the Japanese Ministry of Finance to intervene to hold the pair below this level.
However there is, for the moment, little sign of any bearish pressure building either, with even modest intraday dips finding buyers.
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