EUR/USD and GBP/USD move up as USD/JPY holds steady

A weakening of the US dollar has given space for EUR/USD and GBP/USD to recoup some lost ground.

EUR/USD rebound gathers pace

EUR/USD looks like there might be some short-term strength to this bounce, as the price edges up after rebounding yesterday.

If nothing else, the yawning gap between the price and the 50-day simple moving average (SMA) at $1.1606 would suggest some kind of reversion, although given the strength of the downtrend we should not expect this to run too far. Any rebound would still likely set up a possible shorting opportunity with a more compelling risk-reward outlook than the current price action.

GBP/USD finally moves higher

After making heavy weather of it over the past week with GBP/USD, yesterday finally brought the bounce the bulls were looking.

Like EUR/USD, this rebound is likely to be short-lived, but a move towards $1.3575 and then the 50-day SMA at $1.3639 now looks to be a possibility. From further up, however, we should still expect selling pressure to build, maintaining the overall bearish outlook.

USD/JPY steady after losses

The bounce and reversal of the previous two sessions with USD/JPY might seem to indicate that a new move to the downside could be in play for now, although a move below ¥113.60 would be needed to seal this view and being a move back towards the 50-day at ¥112.50 into play.

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