EUR/USD, GBP/USD and USD/JPY all looking strong
We continue to see signs of risk appetite, as EUR/USD, GBP/USD and USD/JPY keep rallying following gains earlier this week.
EUR/USD strong ahead of ECB
The EUR/USD pair shows no sign of slowing in its ascent ahead of the European Central Bank (ECB) meeting.
Over the past two weeks the pair has found support near the rising 50-hour simple moving avergae (SMA) which is currently $1.1198, and if this holds again another bounce above $1.126 may result. A reversal below $1.11 is needed to provide a more bearish view in the near term.
GBP/USD still advancing
GBP/USD bulls will be hoping for the creation of a higher low as the price retreats from the highs of the week.
A rebound targets those highs at $1.26 and higher, while declines head towards $1.225 and then $1.22. Bears will need to see the creation of lower highs on the hourly chart, which for the time being is still an elusive goal.
USD/JPY pauses after sharp rally
The USD/JPY pair has finally cleared the zone of resistance around ¥107.80 and has leaped higher as a result.
Pullbacks towards this previous area of resistance may be buying opportunities, while short-term upside targets ¥109.45 and then on to ¥112.00.
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