Dollar strength hits EUR/USD and GBP/USD but sends USD/JPY flying
EUR/USD’s run of losses has continued, while USD/JPY has hit its highest level since late August.
EUR/USD reversal gathers pace
While equities have rebounded, the same cannot be said for EUR/USD, which has continued to fall, moving below Friday’s low as the sellers come in.
Short-term trendline support from the February low is now broken, which opens the path to $1.195 and lower. Intraday rallies have been sold over the previous two sessions, which points towards continued losses unless the price can recover $1.215 at the least.
GBP/USD mixed in early trading
GBP/USD has managed to hold above Friday’s low, but the bounce has not managed to achieve much more than that.
Continued gains above $1.40 will help to revive the bullish view, while the sellers will have reasserted control if they can drive below Friday’s lows at $1.3885. However the pair is still firmly in an uptrend so for now this is still a pullback rather than the beginning of something more extended.
USD/JPY soars to new six-month high
USD/JPY was last around this level in late August last year, and was then on a firm downtrend lower. Now it approaches it having rallied hard from the January low and at a new higher high in this uptrend.
The buyers are firmly in control and have ¥107 in their sights, the highest level since mid-August. Having rallied 170 points in the past week some consolidation might be expected, while the bearish view would require a dramatic reversal to negate the generally bullish view here.
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