A mixed bag for the dollar, as strength in EUR and JPY are offset by weakness in AUD and GBP.

Source: Bloomberg

EUR/USD begins to trend higher

EUR/USD's retracement seen since Thursday’s European Central Bank rally appears to be over, with price rising back through $1.0833 and pushing higher once more this morning.

Given the move back above the $1.0869 resistance level, further gains seem likely unless price moves back below $1.0833.

With price currently forming a doji and stochastic well overbought, there is a potential for a short-term retracement, yet this is likely to be temporary.

Key resistance levels are $1.0886, $1.0897, $1.0950 and $1.0981. A closed candle below $1.0833 would bring support levels of $1.0808 and $1.0795 into view. 

GBP/USD continues move lower

GBP/USD continues to trend lower following Thursday’s spike higher, with yet another leg lower occurring this morning.

Unless we see some form of bullish reversal signal, the selling is expected to continue, with support levels of $1.5027 and $1.5000 the next to watch.

However, should we see an hourly close back above $1.5062, then resistance levels of $1.5078, $1.5087 and $1.5107 would be in view.

USD/JPY reverses into bearish bias

USD/JPY's resurgence appears to be over, with the failure to create a new high followed by a break through the ¥123.20 neckline.

We have seen USD/JPY largely rangebound over the last month and this appears likely to continue. Thus a bearish view now holds, with ¥123.00, ¥122.93 and ¥122.88 the next support levels.

However, an hourly close back above ¥123.40 would bring a more bullish outlook, where ¥123.48, ¥123.60 and ¥123.72 come into view.

AUD/USD breaks support

AUD/USD saw price break through the key $0.7280 support level yesterday to provide a clear bearish outlook. Since then it has not looked back, falling 70 points, with price currently flushing lower.

As such, the bearish view holds unless price closes back above $0.7244 resistance on an hourly timeframe.

Support levels of note are $0.7200 and $0.7165, while a close above $0.7244 would point towards $0.7271 and $0.7280.

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