EUR/USD and GBP/USD under pressure while USD/JPY looking stronger

EUR/USD and GBP/USD have edged up in early trading but remain in downtrends from last week.

EUR/USD downtrend resumes

EUR/USD dropped sharply last week, with intraday rallies over the past few sessions continuing to find sellers. The pair continues to create lower lows, targeting $1.09 in the short term.

The drop back below the 50-day simple moving average (SMA) is a bearish development, and suggests a resumption of the longer-term downtrend. An intraday bounce towards $1.103 is already running out of steam and may provide a fresh selling opportunity.

GBP/USD ticks up towards new lower high

Having peaked for the time being at $1.297, GBP/USD has seen steady losses over the course of November so far. Further losses below $1.277 would bring the 200-day SMA at $1.2705 and then the rising 50-day SMA at $1.2569 into play.

As with EUR/USD, intraday rallies have been sold, and as a result we need to see a rebound above $1.287 to revive the bullish view. In the meantime, rallies are still the cue for more selling, with the move off the overnight lows potentially providing another such opportunity.

USD/JPY looks to build on recent gains

USD/JPY succeeded in pushing above the 200-day SMA last week, and while it then dropped back slightly, the short-term move higher is intact. If the price creates a higher low around ¥108.90, then fresh buying pressure may emerge.

Below ¥108.60 the price heads towards rising trendline support from the August low.

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