EUR/USD holds firm while GBP/USD rallies

EUR/USD is still stuck in a narrow range, but is holding its gains, while GBP/USD is continuing to bounce from the lows of the week.

EUR/USD hovers just below $1.12

Bullish momentum has continued to fade for EUR/USD, although a full-blown reversal has still not appeared.

Dips to $1.11 have found buyers for now, with the price yet to establish a lower high intraday. Thus we enter a consolidation phase after the sharp bounce. A break below $1.11 might point to a resumption of the longer-term downtrend, and by contrast a surge through $1.12 revives the current bounce.

GBP/USD rebound brings trendline resistance closer

GBP/USD has steadily climbed from the low of the week, but any bounce that fails to clear $1.30 and the mid-February lower high risks creating another lower high and reaffirming the post-election downtrend.

A fresh turn lower targets $1.275, and then below this a new lower low is created.

USD/JPY heads back to week’s lows

While equities continue to recover, USD/JPY is still languishing near the lows of the week.

Yesterday’s bounce to ¥107.70 ran out of steam, and while the price for now continues to hold above ¥107 it looks like only a matter of time before this is broken and the price heads to ¥106.50.

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