Sterling heads lower once again after brief rebound
EUR/USD and GBP/USD are heading lower, following on from a brief period of strength. Meanwhile, USD/JPY is also weakening, as risk-off sentiment sees higher demand for the yen.
EUR/USD breaking lower after latest upside retracement
EUR/USD managed to rally sharply off the back of a drop into $1.1111 support last week. That continues the downtrend over recent months, with the subsequent rebound likely to falter just like the previous occasions.
The rally took us into an important confluence of resistance, with the price turning lower from a meeting point of two trendlines and the 200-day simple moving average (SMA). A break through $1.1264 would signal a bullish shift away from this recent downtrend. However, until then it looks likely we will continue the wider trend by moving towards the $1.1111 lows once more.
GBP/USD heading lower once again
The gains look to be over for GBP/USD, with the recent rebound being sold into this morning.
The continued creation of lower highs points to further losses from here on in, with a break through $1.2814 required to bring about a more bullish outlook. Until then, there is a good chance we could will see the pair continue to break lower to maintain the bearish outlook of recent weeks.
USD/JPY heading lower once more after post-double top rebound
USD/JPY has been breaking lower over the course of the past week, with the prior rebound looking like a retracement following a double top breakdown.
With the market currently reaching the ¥109.27 swing low, there is a good chance we will see further downside to come as the pair moves into the ¥109.09 lows. A break below that level would signal further downside to come, with a rise through ¥109.63 required to bring about a more bullish outlook for the short-term.
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