EUR/USD, GBP/USD and USD/JPY volatile after Iranian airstrike

EUR/USD, GBP/USD and USD/JPY volatility heightened in the wake of an Iranian attack on US airbases.

EUR/USD slumps into notable support level

EUR/USD has continued its downturn, with the pair heading back into the $1.1125 support level established on Friday.

The uptrend evident throughout the past three months remains in place unless we see a break below the $1.1067 support level. However, a decline below $1.1125 level would certainly raise the likeliness that this is the beginning of the wider bearish reversal in line with the long-term downtrend evident throughout recent years. Thus, today will be dominated by the question of whether $1.1125 will be broken or not, with the $1.1107 Fibonacci support level providing the next level of note below that threshold.

GBP/USD struggles to regain ground amid recent volatility

GBP/USD has failed to really gain any directional traction this week, with market volatility providing a relatively unstable environment for the dollar.

Nevertheless, the bullish trend remains from the past few months, and that signals a high likeliness of further upside to come. Watch out for a break through $1.3212 to bring about a more confident bullish outlook for the short term.

USD/JPY rebounds after Iranian-led decline

USD/JPY saw a sharp move lower overnight, following an Iranian attack on two US airbases. However, the reality of that attack has significantly lessened that impact, with zero casualties and easing fears over a US response.

That rally we have since seen takes the price back towards yesterday’s peak of ¥108.63. A rise through that level would provide a more bullish short-term view as the pair retraces the wider sell-off from ¥109.71. However, until that happens there is a good chance we will see another move lower to continue the current trend of lower highs and lows.

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