Dollar weakens as EUR/USD, GBP/USD strengthen, while USD/JPY heads lower
EUR/USD, GBP/USD and AUD/USD gains look at risk, with Fibonacci retracement levels playing a key role in a potential move lower.
EUR/USD starting to flounder around key resistance
EUR/USD has managed to push back towards the top end of the recent range formation, with the pair remaining within the wider $1.1602-$1.1920 range that has dominated since the beginning of September. With the pair slowing its ascent, there is a good chance we will soon turn lower once again to maintain this range.
The decline into $1.1814 on Thursday highlights the slowing ascent, with the pair continuing to struggle with the $1.1893 level since. As such, it could be worth watching for a bearish reversal signal with a break below the $1.1814 level. To the upside, we would need to break through the $1.1920 level to bring about a bullish continuation signal.
GBP/USD breaks resistance to bring multi-month high
GBP/USD been on the rise once again this morning, with the pair breaking into the highest level seen since the beginning of September.
This pair is trading within a clear uptrend seen over the course of the past two-months, of which this latest rise is just the latest leg within that trend. As such, further upside looks likely, with a break back below the $1.3195 swing low required to bring about a bearish reversal signal.
USD/JPY decline pauses, yet downtrend persists
USD/JPY has paused for a breather after a period of significant declines since the 11 November peak.
With the pair trading within a long-term downtrend, we look likely to see further weakness play out as we move forward. For the short term, a break through the ¥104.21 swing high would be required to signal a potential intraday bounce coming into play.
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