EUR/USD under heavy selling pressure as GBP/USD and USD/JPY edge higher
It was a tough day for EUR/USD yesterday, which fell to its lowest level in 16 months, while GBP/USD and USD/JPY have made small gains.
EUR/USD slumps below $1.14
EUR/USD continues to plumb new depths for the year, lurching lower yesterday to a level below $1.14 for the first time since July 2020.
The next target to the downside is the $1.124 swing high from the very end of 2019. So far there is no sight of a more bullish short-term move, and even a rally towards $1.16 would still provide the potential for a lower high and a reinforcement of the downtrend.
GBP/USD bounce continues in cautious fashion
Things are looking a touch better here for GBP/USD bulls, although even here the pair is still edging up only from a lower low.
A rebound from here towards the upper bound of the current daily descending channel would see the pair head back towards $1.37. Sellers at present may look for a reversal of the past three sessions of gains, which in this case would see $1.3365 broken to the downside and a firmly bearish leg lower begin.
USD/JPY still targets recent highs
The dollar continues to strengthen overall with USD/JPY, and the pair is slowly recovering from the early November dip below ¥113.00.
A move back towards ¥114.50 is still contemplated, supported by rising stochastics and guardedly bullish price action. A move back to, and then below, ¥113.00 would be needed to negate this view.
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