EUR/USD, GBP/USD and USD/JPY show tentative signs of weakness after recent gains
EUR/USD, GBP/USD and USD/JPY show initial signs of weakness, but questions remain over whether we are due a pullback after recent gains.
EUR/USD pullback brings price into Fibonacci support
EUR/USD has been easing back over the course of the past week, with the price falling into the 76.4% Fibonacci support level.
The recent attempt to regain ground is set within a wider downtrend from this pair, bringing the potential for a move lower before long. A break below $1.1572 would bring about a fresh bearish outlook for the pair. However, for now the question is whether we see the price turn upwards from the 76.4% Fibonacci support level or not.
GBP/USD continues to consolidate after recent rise
GBP/USD has been consolidating over the past week, with the pair pushing up towards the crucial $1.3913 swing high. A break through that level would bring an end to the wider trend of lower highs that has been playing out over recent months.
However, we remain below that level as things stand, with the price consolidating above the $1.3742. A break below that support level could bring the bears back into play over the near-term. Given the wider downtrend seen since the May highs, such a breakdown could bring another bearish phase into play.
USD/JPY falling back after latest move higher
USD/JPY has turned lower in early trade today, with the price seemingly falling short after a move upwards from the 76.4% Fibonacci support level. This has taken the price back down below trendline support, threatening a wider pullback for the pair.
A break below ¥113.41 and ¥113.00 would raise the likeliness of a wider retracement phase coming into play. Until then, the question here is whether we break those support levels or find support once again to maintain the trend of higher lows.
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