EUR/USD and GBP/USD weaken amid dollar strength, while USD/JPY falls into support

Dollar strength returns to send EUR/USD and GBP/USD lower, while USD/JPY weakens back into a key confluence of support.

EUR/USD falls back into near-term support

EUR/USD has been on the slide once again following a rise in the early part of the week. That previous rise looked to bring yet another retracement move within a recent downtrend.

With that in mind, it looks likely that we will see further weakness going forward, with a beak below $1.1807 required to strengthen that bearish story. As such, a short-term downtrend remains unless the price pushes through the $1.1975 level, with a break below $1.1807 required to signal the beginning of another leg lower from here.

GBP/USD heading lower from Fibonacci resistance

GBP/USD is also on the back foot after its latest retracement, with the rally into 61.8% Fibonacci resistance subsequently bringing about a fresh leg lower for the pair.

We are yet to create a new lower low, yet a move back below $1.3731 would bring about a fresh sign that this downtrend is alive and well. Ultimately, we will expect the downtrend to remain in play unless the price breaks up through the $1.40 handle.

USD/JPY falls back into key confluence of support

USD/JPY has been on the slide since Friday’s high, with the pair falling back into a key confluence of support. That meeting point of both trendline and horizontal support (¥110.41) brings about a key crossroad for this pair.

With the stochastic pushing up out of oversold territory, there is a chance we could see the bulls come back into play here. As such, keep an eye out for this pair, given the potential to reverse upward or break out from its recent uptrend.

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