CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Dollar declines continue to drive EUR/USD, GBP/USD, and USD/JPY

Dollar weakness helps to drive EUR/USD and GBP/USD higher, while USD/JPY seeks to build on its bearish reversal.

EUR/USD weakening after latest leg higher

EUR/USD has managed to overcome the key $1.199 resistance level this week, with the pair pushing upwards following that Monday break. However, price has been easing back since yesterday’s peak of $1.208, with the pair seemingly in retracement mode.

A break below the $1.1942 swing low brings about a fresh bearish signal for the pair. Until then, this pullback looks to bring a potential buying opportunity, with the 61.8-76.4% Fibonnaci zone ($1.1975-$1.1995) looking particularly interesting for bulls.

GBP/USD struggles to break key 1.40 resistance

GBP/USD saw a sharp appreciation over the course of Monday, rising into the key $1.4006 threshold as a result. That key resistance level appears to have held once again, with price falling back into the prior resistance level of $1.3919.

With the pair having broken through that level on the way to $1.40, there is a good chance we are preparing to exit this recent bearish phase. However, a break through $1.40 would bring greater confidence that such a move is coming to pass. Nevertheless, until that breakout occurs, this current move lower looks likely to be a retracement phase before we move higher.

USD/JPY seek to build on recent breakdown

USD/JPY moved into another six-week low overnight, with the pair seeking to build on the bearish reversal signal seen on Monday.

That break below ¥108.33 signals a potential end to the bullish trend exhibited throughout 2021 thus far, bringing the potential for a bearish trend to come into play. With that in mind, the intraday bearish trend looks likely to continue until we see a break up through the prior swing high (currently ¥108.55).

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