EUR/USD and GBP/USD rise, as USD/JPY attempts to recover
EUR/USD and GBP/USD are looking to build on recent gains but USD/JPY is still struggling to move higher.
EUR/USD targets $1.14
EUR/USD continues to recover, maintaining its uptrend from the lows of mid-June.
Further gains still target the $1.14 level, and a bullish crossover in the daily moving average convergence/divergence (MACD) would add to the bullish view provided by the rising stochastic reading. It would take a move back below $1.12 to negate this outlook.
GBP/USD rally enters a new week
It has been a relentless move higher for GBP/USD since the latter part of June but it shows no sign of stopping yet, as the pair heads towards the 200-day simple moving average (SMA) at $1.2694.
Above this, the $1.28 peak from early June comes into play. A reversal below $1.25 would certainly suggest that the bounce has run its course but there is as yet no sign of any lower highs or lower lows on the intraday chart.
USD/JPY still under pressure
USD/JPY has shown little sign of turning higher, as the retreat from ¥108.00 goes on. Losses in June were stymied around ¥106.50, so a more bearish view requires a solid break below this level.
Alternatively, a more bullish view would require the price to break trendline resistance from the June peak, which would suggest that a rally through ¥107.40 is needed.
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