EUR/USD and GBP/USD stabilise but USD/JPY stuck below resistance

EUR/USD and GBP/USD suffered sharp drops yesterday, but some signs of stabilisation have been seen, while USD/JPY is yet to break higher.

EUR/USD attempts to stabilise

The EUR/USD pair plunged yesterday from $1.20, but the decline has slowed as the price reaches $1.19.

A possible higher low here might provide a further buying opportunity for a renewed push towards $1.20 and higher. Alternatively, further declines bring rising trendline support from the 12 August low into view around $1.183.

GBP/USD continues to climb

Dollar strength continued to weigh here as well for GBP/USD, pushing the price back from its latest high.

While the price has dropped below the 50-hour simple moving average (SMA) of $1.3384, it has moved momentum indicators back towards oversold readings, providing the potential for a new higher low and an eventual push higher. Further declines bring $1.325 into view, particularly as no-deal Brexit headlines make a return.

USD/JPY edges higher

The price continues to recover some of the ground lost last week for USD/JPY. However, gains have stalled at ¥106.10, with no sign yet of a break higher.

However, a higher low yesterday at ¥105.60 provides hope of a rise in bullish momentum, potentially opening the way towards ¥106.80 and higher. A drop below ¥105.70 might bring a more bearish view into play raising the prospect of a move back towards ¥105.25.


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