EUR/USD, GBP/USD, and USD/JPY expected to drift lower
EUR/USD, GBP/USD, and USD/JPY are expected to drift lower, although USD/JPY weakness could be relatively fleeting given the wider channel.
EUR/USD regaining ground from Fibonacci support
EUR/USD has been on the back foot once more, bringing the price back into the 76.4% Fibonacci support level of $1.1878 yesterday. However, the pair is on the rise in early trade today, with the price tentatively rising through the short-term trendline resistance.
While we could see further short-term upside, there is a good chance that this rebound is short-term in nature. As such, a bearish view holds unless we see the price push up through the key resistance levels of $1.1944 and $1.1975.
GBP/USD expected to continue its decline
That bearish trend is likely to remain in play as we move forward, with any short-term upside bringing a potential move back into trendline resistance. With that in mind, further downside is expected unless we see the price break up through the $1.3939 swing high.
USD/JPY continues to drift lower within rising trend
USD/JPY has been easing back since rising into trendline resistance, with the pair grinding lower over the past week. For the most part this appears to be a short-term move that at most will bring another retracement before we head higher once again.
With that in mind, watch out for further short-term downside, with the trendline and Fibonacci support zone bringing an area for bulls to come back into play once again (¥110.04-¥110.25). However, it is possible that we front-run that rally, and thus the intraday trend of lower highs is important. With that in mind, a rise through ¥110.76 would bring a potential bullish signal to cut this decline short.
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