Dollar declines continue to drive EUR/USD, GBP/USD, and USD/JPY

Dollar weakness helps to drive EUR/USD and GBP/USD higher, while USD/JPY seeks to build on its bearish reversal.

EUR/USD weakening after latest leg higher

EUR/USD has managed to overcome the key $1.199 resistance level this week, with the pair pushing upwards following that Monday break. However, price has been easing back since yesterday’s peak of $1.208, with the pair seemingly in retracement mode.

A break below the $1.1942 swing low brings about a fresh bearish signal for the pair. Until then, this pullback looks to bring a potential buying opportunity, with the 61.8-76.4% Fibonnaci zone ($1.1975-$1.1995) looking particularly interesting for bulls.

GBP/USD struggles to break key 1.40 resistance

GBP/USD saw a sharp appreciation over the course of Monday, rising into the key $1.4006 threshold as a result. That key resistance level appears to have held once again, with price falling back into the prior resistance level of $1.3919.

With the pair having broken through that level on the way to $1.40, there is a good chance we are preparing to exit this recent bearish phase. However, a break through $1.40 would bring greater confidence that such a move is coming to pass. Nevertheless, until that breakout occurs, this current move lower looks likely to be a retracement phase before we move higher.

USD/JPY seek to build on recent breakdown

USD/JPY moved into another six-week low overnight, with the pair seeking to build on the bearish reversal signal seen on Monday.

That break below ¥108.33 signals a potential end to the bullish trend exhibited throughout 2021 thus far, bringing the potential for a bearish trend to come into play. With that in mind, the intraday bearish trend looks likely to continue until we see a break up through the prior swing high (currently ¥108.55).

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