EUR/USD, GBP/USD and USD/JPY all topping out?
We could be at key turning points for major currencies as EUR/USD, GBP/USD and USD/JPY begin to see recent bullish momentum fade.
EUR/USD stalls below $1.11
The pair’s failure to maintain upward momentum beyond $1.11 would signal a potential bearish development. This would then bring $1.095 into play. A move above $1.11 heads towards $1.115.
GBP/USD consolidates after Friday surge
GBP/USD has continued to climb here, surging on Friday to its highest level since late July.
So far there is no sign of the rally reversing, but it is still a broader counter-trend move in the fall that has been in place since February. A reversal below $1.235 would be a bearish development and result in a possible move back towards $1.20. Above the 100-day simple moving average (SMA), the price heads towards $1.263.
USD/JPY drops back below 100-day SMA
USD/JPY’s drop from Friday’s peak just above the 100-day SMA will have some expecting a reversal, with the downtrend of the past few months potentially reasserting itself.
It has been an impressive counter-trend move here, but a move back below ¥107.50 could confirm that a lower high is in place. This could then see the price head back towards ¥105.00. Above ¥108.00, the price heads back to the 200-day SMA at ¥109.40.
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