EUR/USD steadies after pullback, while GBP/USD and USD/JPY climb
EUR/USD is finding some support after recent losses, and GBP/USD and USD/JPY continue to rise.
EUR/USD edges back above 50-day SMA
EUR/USD's pullback has given short-term shorts a chance while also helping to create a higher low and confirm the continuation of the uptrend.
The recovery above the 50-day simple moving average (SMA) of $1.2078 is a good first step, and will help reinforce the impression that further gains in the direction of $1.23 and higher are likely. A reversal below $1.205 would point towards renewed weakness in the near term.
GBP/USD recovers $1.36
GBP/USD’s choppy pattern continues, but once again the price has recovered after some brief weakness.
As the price neared $1.35, buyers came in to drive the price back up, creating a higher low. Renewed gains target $1.37, while a revival of the bearish case requires a reversal back below $1.35 and then below last week’s low at $1.345.
USD/JPY clings on near ¥104
As in previous lower highs, USD/JPY continues to fight hard to hold around the 50-day SMA (¥103.97).
Short-term resistance would come into play at ¥104.08, while rising support over recent days has prevented any significant downside. A drop below ¥103.50 would confirm the view of the current bounce as forming a lower high, while gains above ¥104.40 may point towards further strength.
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