Dollar takes a hit for EUR/USD, GBP/USD and USD/JPY
Dollar weakness looks to be taking hold, with EUR/USD, GBP/USD, and USD/JPY all moving against the greenback.
EUR/USD soars amid month end dollar sell-off
EUR/USD saw a sharp rise yesterday, amid a month-end slump in the dollar. That has taken us beyond the 76.4% Fibonacci level ($1.0923), raising the likeliness of a bullish break through $1.0991.
Overnight weakness has also failed to really take hold so today will be crucial in guiding us for the week ahead. A break through $1.0991 would bring about a more bullish outlook by negating the wider creation of lower highs that have been in play throughout the past two months. As such, that trend does still remain intact, yet the break through the 76.4% level could point towards a bullish break through $1.0991. Should that occur, it would negate the recent bearish trend.
GBP/USD rallies into key resistance
GBP/USD has managed to continue its recent ascent, with the 76.4% support at $1.228 ultimately proving a continuation signal after all.
With the price respecting the $1.2647 resistance level yesterday, we need to see a break through that level to continue this resurgence. Until then, there is a good chance this pullback is a temporary retracement before we head back into that $1.2647 resistance level. With that in mind, another push higher looks likely, with a break below $1.2389 required to bring a more bearish picture once more.
USD/JPY likely to head lower after overnight upside
USD/JPY rebounded overnight, with the pair's price rising back into trendline resistance.
With the price having broken below the ¥106.92 resistance level on Tuesday, there is a good chance that this recent resurgence is merely a retracement before we head lower. With the 61.8% Fibonacci level and trendline resistance holding up, we look likely to turn lower from here. As such, a bearish outlook is in play as we go forward, with a break through ¥108.08 required to negate that view.
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