EUR/USD and GBP/USD head higher as USD/JPY falls back
Dollar weakness has given further strength to EUR/USD and GBP/USD, while USD/JPY is heading lower.
EUR/USD makes headway
EUR/USD continues to recover from the lower low of late January, as hopes around a more hawkish European Central Bank (ECB) bolster the currency. The price has broken above trendline resistance from the January highs, and now targets the 50-day simple moving average (SMA) at $1.1309, and then on towards $1.14.
GBP/USD looks for further gains
After stabilising at a higher low in the last week of January, GBP/USD continues to make headway, moving above the 100-day SMA ($1.3515).
This more bullish view now brings the $1.366 level into play, and then on towards $1.37. A reversal back below $1.345 would move the outlook towards a neutral one, but it would take a reversal below January’s low to revive the bearish view.
USD/JPY heads lower
Continued USD weakness has pushed USD/JPY back from trendline resistance.
A move back below ¥114.50 would amplify the short-term bearish view and bring trendline support from December into play. Additional declines bring ¥113.50 into view.
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