EUR/USD, GBP/USD, and USD/JPY see dollar strength ease
Dollar gains take a breather for now, yet risk attitudes remain key for EUR/USD, GBP/USD, and USD/JPY.
EUR/USD starts to weaken after recent rebound
EUR/USD is on the back foot this morning, with the pair starting to weaken from a 76.4% Fibonacci resistance level ($1.2148). Despite the short-term intraday creation of higher highs, it looks like we could be forming an ABC style retracement into that Fibonacci level.
That points towards a potential continuation of the recent bearish trend. A rise up through the $1.2176 would negate this view, bringing a bullish signal for the pair. Until then, there is a good chance we could start to unwind this latest rise, with a break below $1.2094 pointing towards a potential challenge of the head and shoulders neckline of $1.2059.
GBP/USD breaking higher within ascending triangle formation
GBP/USD continues to respect the ascending triangle formation, with recent 76.4% Fibonacci retracement levels being hit along the way.
The $1.3758 level represents the key resistance threshold to watch out for, with a break through that level signaling an extension of this latest push higher. A break below $1.3657 would be required to negate this ongoing bullish outlook.
USD/JPY looks likely to continue recent resurgence
USD/JPY has been on the rise over the past week, with the pair appearing to reverse the long-term downtrend in play.
Price is currently consolidating after Friday's latest leg higher. However, unless we see a break through the ¥104.17 swing low, it is likely we are simply consolidating before price pushes upwards once more.
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