EUR/USD and GBP/USD fall back as dollar rises while EUR/JPY keeps rising
The dollar is rising and putting pressure on the euro and sterling, while the euro continues to rise against the yen.
EUR/USD in retreat as dollar strengthens
EUR/USD decline continues apace, with more selling on Tuesday as the dollar strengthened and US yields rose.
The 200-day simple moving average (SMA) has now been firmly breached, and it would take a major effort from the buyers to reverse this developing bearish outlook, ideally with a close back above $1.08.
Further declines target the May lows around $1.067, and then down to the lows of February at $1.0536.
GBP/USD comes under pressure
This GBP/USD uptrend still could be described as ‘intact’, though it has taken a battering since the July peak around $1.31.
So far, the rallies do not appear to be sustainable, which puts a move back to the $1.24 level in view, and would also see the price test the 200-day SMA. A lower high below $1.27 bolsters the bearish view.
It would need a close back above $1.27, and ideally above $1.28, to suggest that the buyers have reasserted control.
EUR/JPY still in uptrend
While the euro suffers against the dollar, it remains on top against the yen.
Recent weakness with EUR/JPY has seen selling run out of momentum around the 50-day SMA, leaving the short-term uptrend from the July lows intact. Momentum has slowed but the overall move higher is still in place, and a new attempt to clear the August highs just below ¥160.00 seems likely.
A close below ¥157.00 could indicate a fresh bout of short-term weakness, but a much bigger drop would be needed to put a real dent in the bullish view.
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