EUR/USD under pressure while GBP/USD and USD/JPY look to push on
The EUR/USD decline looks set to continue, but cable and dollar-yen are continuing to recover.
EUR/USD threatens bearish turn
The EUR/USD rebound came under pressure at the end of last week as the pair fell sharply on Friday.
While it has yet to head back to the 14 November low of $1.099, the overnight bounce has so far been fairly anaemic. Friday saw a lower high established around $1.109, so any failure to move back above this would provide a fresh selling opportunity. A move through the $1.11 peak from last week would reinforce the more bullish view.
GBP/USD rebounds in early trading
After moving lower over the past week, the GBP/USD price has found some support around $1.282.
To provide a more bullish view, the pair needs to move above $1.293, the highs from Friday, which would open the way to testing $1.297 and higher, which has held back progress since mid-October. A lower high in today’s session would revive the short-term bearish view, but it is worth noting that dips towards $1.277 have been buying opportunities of late, which means a firmly bearish view requires a move below this level.
USD/JPY continues its recovery
While the USD/JPY price dropped through trendline support last week, it then found support at the rising 50-day SMA (simple moving average), currently at ¥108.29.
Further gains target ¥109.10, and then on to ¥109.40. For the moment, it looks like the price has created a new higher low, reinforcing the view of further gains over the next few days. A move back below ¥108.25 would be needed to begin to create a more bearish view.
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