EUR/USD, GBP/USD and USD/JPY driven by weaker dollar
EUR/USD, GBP/USD and USD/JPY fight back against the dollar as a risk-on mood helps drive the greenback lower.
EUR/USD pushing higher towards key resistance
EUR/USD is continuing the gains seen in the back-end of last week, with the pair heading back towards the key $1.192 resistance level once again.
That pair has largely been in a range over the course of the past two months, with the price failing to break through either $1.1602 or $1.192 during that period. Thus while the rise through the $1.1843 swing high does point towards a potential push higher from here, the big questions will be asked at $1.192 if we reach that level.
GBP/USD heads higher after latest retracement
GBP/USD is on the rise once more, as Brexit talks accelerate into the final seven weeks of negotiations. That uncertainty is likely to ensure a relatively volatility pound as we move forward, yet for now the pair has a clear uptrend in play.
With that in mind, the uptrend remains relevant until we see a break below the $1.2854 swing low. With the pair having established a mid-range retracement, there is still a chance we could see the pair decline back toward the deeper levels. As such, it makes sense to await a break through $1.3313 to negate that potential for short-term weakness.
USD/JPY heads lower after rally into descending trendline
USD/JPY is back on a more bearish footing after the latest retracement into a confluence of Fibonacci (76.4%) and trendline resistance.
The pair has been trading in a clear downtrend over the course of 2020 thus far, and this latest rally does little to negate that fact. With that in mind, this pair looks likely to weaken further from here, with a break up through the ¥106.11 swing high required to negate that bearish outlook.
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