EUR/USD and GBP/USD hit hard, while USD/JPY surge stops at key resistance

EUR/USD and GBP/USD break into multi-month lows, while USD/JPY starts to ease back from a key resistance level.

EUR/USD at key support level after hitting 10-month low

EUR/USD has been on the slide of late, with the US dollar strength driving weakness for this pair. That decline has taken us tentatively below the August low of $1.1664 to bring about a fresh 10-month low.

The ability to maintain the price action below that level is key, signalling the potential for a new bearish phase to come into play. Alternately, we would need to see a break up through $1.1755 to bring about a more positive outlook for this pair.

GBP/USD hit hard, bringing eight-month low

GBP/USD saw sharp selling yesterday, bringing the price back below the July low of $1.3572. That points towards a wider bearish trend playing out for this pair, with further downside expected as a result.

A rise up through $1.375 would be required to negate that bearish view.

​USD/JPY starts to turn lower from resistance

USD/JPY has enjoyed a period of gains, as rising treasury yields drove the pair into a bullish breakout. However, the final hurdle within that breakout appears to be a stretch too far, with the pair reversing lower from the ¥111.66 level.

It is likely that we ultimately do break through that resistance level. However, until that happens, we could see a short-term downside retracement from that level.

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