EUR/JPY, GBP/USD and USD/JPY likely to reverse lower
Weakness likely to lie ahead for EUR/USD, GBP/USD and USD/JPY, with recent gains being reversed this week.
EUR/USD rebound likely to give way to further downside
EUR/USD has been selling off sharply since breaking below the trendline support that underpinned a symmetrical triangle over the course of last week.
Yesterday’s losses gave way to a gradual rise throughout the remainder of the day, with price now flatlining overnight. Given the recent formation of lower highs and lows, this pair is expected to decline once again. A break through $1.1025 would be required to negate this bearish short-term outlook.
GBP/USD poised for bearish reversal after recent gains
The GBP/USD uptrend has been broken this week, with price falling below the $1.2436 support level yesterday. Price has been trading sideways since, yet we look to be seeing the beginning of the next breakdown given the sharp breakdown this hour.
A break below $1.2413 would bring a confirmation signal of another bearish turn. However, with the Supreme Court ruling due for 10.30am, there is an important political hurdle to consider for sterling traders.
USD/JPY reversal slowly taking shape
USD/JPY has been turning lower from an important confluence of resistance, with price having met both ascending and descending trendline resistance last week. We have been creating lower highs and lows since, with yesterday’s sharp move lower providing the latest such move.
While the pair has managed to gain ground overnight, there is a strong chance that this is a precursor to further downside. As such, bearish positions are preferred from a deep retracement (76.4% resistance have been respected thus far), with a rise through ¥107.77 required to negate this outlook.
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