EUR/USD and USD/JPY falter while GBP/USD fights to hold support
The euro’s bounce against the greenback is running out of steam, while against the yen the dollar is also losing momentum.
EUR/USD rebound begins to stall
The EUR/USD rebound from the lows of late September has stalled below $1.100. If this marks a lower high then the price may begin to roll over and target $1.085.
A move above $1.100 then encounters trendline resistance from the June high at $1.102. A break above this would provide a more short-term bullish view, but the pair still remains firmly in a longer term downtrend.
GBP/USD tests $1.225 again
Cable is once again testing the $1.225 area that has marked support over the past two weeks for the GBP/USD currency pair. If this continues to hold then another attempt to break above $1.235 may result.
It would require a daily close of below $1.220 to reassert the bearish case, targeting $1.200.
USD/JPY in descending channel
The USD/JPY pair continues to bounce from the lower bound of its descending channel, although gains are already stalling at ¥107.40 as they did yesterday.
A push lower heads to ¥106.60 and the lows from last week, while fresh gains head to the upper bound of the channel at ¥107.80.
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