EUR/USD and GBP/USD climb against the dollar, and USD/JPY moves higher again
Some dollar weakness has provided space for EUR/USD to bounce and GBP/USD to continue its recovery, while against the yen the dollar has recouped Wednesday’s losses.
EUR/USD finds strength to bounce
A rebound has finally materialised for EUR/USD, at least in the short term. The first target is the $1.164 swing high from 4 October, and if this is pierced to the upside then buyers may be able to push on towards the 50-day SMA at $1.1722.
This is only a recovery within a longer-term drop however for now, so bulls should be cautious about pushing their luck too far.
GBP/USD rebound continues
A more substantial recovery is in place for GBP/USD, but again it takes place within the run of lower highs and lower lows seen since the summer.
Sellers will be on watch for any resumption of the move down, while buyers will hope the price can clear the 50-day SMA at $1.3721 and then move on above the late September high at $1.375.
USD/JPY recoups losses
There is little scope for weakness for USD/JPY, with buyers already causing the price to recover most of yesterday’s losses.
Gains above ¥113.70 have been difficult to achieve over the past few days, holding back upward progress. A deeper move below trendline support at ¥112.50 would mark a more bearish development.
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