EUR/USD, GBP/USD and USD/JPY under early pressure

The euro is faltering against the dollar, but against the yen the greenback is still in an uptrend.

EUR/USD weakens below resistance

Pre-European Central Bank (ECB) nerves are threatening to undermine the euro’s climb from last week’s lows. Gains stalled below $1.106 yesterday for EUR/USD, mirroring the price action from last Thursday.

A push below $1.101 would be a bearish signal and suggest a resumption of the ongoing downtrend. Further gains in this counter-trend move require a close above $1.108, indicating that the price has breached resistance and is poised to challenge $1.15 and then $1.125.

EUR/USD chart Source: ProRealTime

EUR/USD chart Source: ProRealTime

GBP/USD see-saws on Parliament news

Volatility reigns supreme in GBP/USD at present, but so far gains above $1.235 have proven impossible to sustain.

Yesterday’s dip below $1.225 found buyers, so a drop back below here is needed to provide a more bearish assessment, that might potentially result in a move back to $1.2. Above $1.238 the price will look to consolidate its newly-created higher high (relative to the late-August peak), and head towards the 100-day simple moving average (SMA) at $1.2533.

GBP/USD chart Source: ProRealTime

GBP/USD chart Source: ProRealTime

USD/JPY still in firm uptrend

The rally continues here, the USD/JPY pair having carved out a higher high yesterday.

The price is now above the 50-day SMA for the first time since the end of August. Continued gains target ¥109.00, but a pullback towards ¥106.50 would still see the pair hold rising trendline support from the 26 August low.

USD/JPY chart Source: ProRealTime

USD/JPY chart Source: ProRealTime


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