US dollar weakness appears to be coming into play today, despite the rallying USD/JPY pair.

Dollar and pound
Source: Bloomberg

Will EUR/USD bounce once more?

EUR/USD has been drifting lower overnight, with price largely moving sideways.

However, we have since seen a bullish trendline break and with price breaking through the 10,947 resistance, there is a good chance that price could rise from here.

With that in mind, a bullish view is returning into play, to continue the new highs and higher lows instigated by the European Central Bank last week. Resistance levels of $1.0962, $1.0981 and $1.1042 will be key to any upside.

Meanwhile, a closed candle below $1.0925 would point towards further losses for the pair.

GBP/USD rising once more

GBP/USD is seeking to end the week in style, following on from a very strong Wednesday, which took price from the lower end of a wedge to near the top of it (currently $1.5315).

Despite the drift lower yesterday, the current move higher points towards the $1.5202 level which needs to be broken for a new high to be posted.

Given the uptrend in play this week, a break through $1.5202 does seem likely and thus a bullish bias remains given that we have not seen any reversal signals yet.

Resistance levels of note are at $1.5170, $1.5202 and $1.5241. This bullish bias would be negated should we see an hourly close below $1.5111.

USD/JPY bouncing from support

USD/JPY sold off in style this week and passed through the crucial ¥122.30 support level. However, we are now seeing a fightback being staged, with price creating new highs and higher lows.

We are currently seeing price move higher from the ¥121.87 support level and the bullish engulfing pattern that will likely be formed gives us an indication that further gains are likely.

This bullish bias holds unless we see an hourly close below ¥121.87. Resistance levels to watch are ¥122.23 and ¥122.30.

Key level in sight for AUD/USD

AUD/USD saw a nice bounce higher from $0.7170 support on Wednesday, with the pair drifting lower on Thursday.

This has brought us back to the $0.7237 support level which marks a key resistance level during the accumulation phase earlier in the week.

The $0.7237 level is going to be crucial to today’s trade for AUD/USD, with a bullish outlook being in place unless we see an hourly close below that level.

Resistance levels to watch are at $0.7274, $0.7280 and $0.7313, whereas a closed candle below $0.7237 would point towards the $0.7200, $0.7186 and $0.7170 levels.

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