EUR/USD, GBP/USD and USD/JPY pause after recent gains
Gains in key FX pairs have stalled so far this week, although we have not seen much in the way of downside either for the time being.
EUR/USD looks to move higher
Buyers drove the EUR/USD to a two-week high at $1.134, through the area of resistance around $1.13.
While the price has dropped back, we would look for a higher low to be created above $1.124 that will then allow the pair to continue its move higher, through $1.134 and on to a new higher high. A reversal below $1.124 brings the support zone around $1.12 back into play again.
GBP/USD holds on to recent gains
GBP/USD has drifted sideways over the past week, but has not seen much in the way of downside even as it remains unable to push beyond $1.25.
If the price reverses below $1.24, the more bearish view will begin to gain some traction, potentially bringing $1.225 into view. Alternatively, a renewed move higher and through $1.255 would clear previous peaks over the past month and suggest a resumption of the break higher from last week.
USD/JPY fails to move higher
USD/JPY continues to spin around the ¥107.40 level, unable to resume the march higher of late June.
However, like cable, the price has fought hard to avoid much downside. If the price clears ¥107.70, then another push towards ¥108.00 and higher may develop. A move back below ¥107.20 would revive the bearish view and open the path to ¥106.80 and ¥106.20.
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