EUR/USD under pressure while GBP/USD holds steady and USD/JPY rallies
More poor eurozone data continues to hit EUR/USD, while dollar strength lifts USD/JPY. The pound remains relatively quiet a day after the announcement of Boris Johnson as the new UK PM.
EUR/USD still on the back foot
Hopes of a rebound were dashed as the EUR/USD price continued to fall yesterday, moving towards the $1.112 support zone. A possible rebound from this level would head towards $1.12 (previous support) and then on to $1.13.
The downtrend on the hourly chart is still firmly in place, so rebounds to work off the current oversold conditions may merely be fresh selling opportunities. The price has shown little ability to hold above the key moving averages on the hourly chart, so until this changes the sellers remain in control.
GBP/USD aims to create a higher low
Yesterday’s GBP/USD losses were stemmed around $1.243, which may see the creation of a higher low, but now a rebound needs to move above $1.255/$1.26, which held back progress in mid-July.
Further declines head towards $1.238, as the price resumes its downward move.
USD/JPY pushes higher
USD/JPY has been climbing steadily over the past few days, and may well be establishing a new higher low as it drops back from the highs of the week at ¥108.30.
If it can hold above ¥107.80 then the bullish view remains intact, and a fresh move higher may develop. The current bullish view, which builds on the 5 July breakout from trendline resistance, would only be impaired if the price drops back below ¥107.20.
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