EUR/USD and GBP/USD rally as USD/JPY stalls
Dollar weakness continues to drive gains for the euro and sterling, but USD/JPY’s attempts to make headway have been stymied again.
EUR/USD powers higher
EUR/USD's climb has seen it return to, and move above, the upper bound of the descending channel.
As we noted earlier in the week, the buyers remain firmly in control, with the bullish view reinforced by Wednesday’s push higher. The next targets to the upside are the July and then June peaks at $1.19 and $1.1975 respectively.
GBP/USD continues its recovery
Gains with GBP/USD have carried the price above trendline resistance from late July, although with the 50-day simple moving average (SMA) at $1.3808 now crossing below the 200-day SMA ($1.381) the view is shifting inexorably towards a bearish view.
A renewed decline heads towards $1.36. Recent gains this week have stalled at $1.3802, so a move above this short-term high is likely to spark further upside.
USD/JPY struggles to push higher
Hopes of a decent move higher yesterday were dashed for USD/JPY as the bounce hit a wall of selling at ¥110.40 as previous rallies this last week have done.
Further gains head towards ¥110.50, the vital area of resistance from July and into early August. For now, the uptrend of August remains intact.
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