EUR/USD rebounds, while GBP/USD and USD/JPY retreat
The euro and yen continue to gain against the dollar, while sterling’s recent gains are under threat.
EUR/USD shows more signs of life
EUR/USD has rebounded for three days and, so far, it looks like the bounce has further to go.
The hourly chart has provided an elegant series of higher highs and higher lows on the hourly chart, with the latest bounce from $1.086 being followed up by a fresh push high. Of course, this only puts a small dent in the decline over the past month and leaves the broader downtrend intact.
GBP/USD rally comes under threat
The GBP/USD bounce of the past few days is at risk if the decline goes below $1.294, since this would clear the previous higher low.
This would then open the way to $1.29, and then to $1.285 and the low from 20 February. Further gains above $1.302 would target $1.306, with a move above this level establishing a higher high and helping to provide a more positive view in the short term.
USD/JPY continues to retreat
USD/JPY continues to work off the gains of last week, but the longer-term trend higher remains firmly intact. Indeed, any pullback that holds above ¥108.50 would still be a higher low.
Further weakness towards ¥109.60 might see some buyers emerge. In the short term, intraday rallies have not lasted long, with ¥110.50 and then ¥111.00 as upside targets in the event of a move higher.
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