EUR/USD, GBP/USD and USD/JPY all in retreat
Risk aversion is being felt across FX markets, as the dollar rises versus the euro and sterling, but gives way against the yen.
EUR/USD reversal continues
The downtrend of the past week goes on, as the EUR/USD price heads back to the lows of last week at $1.082. Further losses bring $1.077 into view, the lows from early April.
As we saw on Friday and again yesterday, the price is so far unable to break above $1.089, a key area of resistance over the past week. Until this is broken to the upside, further gains seem unlikely.
GBP/USD downtrend gathers pace
It is a similar outlook for GBP/USD, as the downtrend from last week’s peak at $1.265 continues. Lower highs and lower lows remain in place.
Some strength in Monday’s session ran out of steam at $1.248, hitting trendline resistance. While the price is attempting to push higher in the early part of Tuesday’s session, it will need to clear $1.248 to provide a more bullish view. Further declines head towards $1.231 and $1.22.
USD/JPY struggles to hold its ground
Since Friday we have seen sellers continue to bear down on the price of USD/JPY, with short-term bounces coming under pressure.
Repeated attempts yesterday to break short-term resistance failed yesterday, and further declines towards ¥107.00 and lower seem likely. A rally through ¥107.90 would provide a more bullish short-term view.
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