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EUR/USD, GBP/USD, and USD/JPY fall back towards key support

EUR/USD, GBP/USD, and USD/JPY all fall back towards key support, but will we see a rebound or breakdown?

Transcript

EUR/USD falls back below key support

EUR/USD ended the week with a bang, as the pair slumped back below the $1.2104 low set on Friday prior to that.

The recent decline through trendline support appears to have paved the way for further weakness, and the tentative move through $1.2104 support on Friday looks to build on that. With that in mind, we could be on the cusp of further downside from here. A break up through the $1.2218 swing-high would be required to bring a more bullish picture back into play.

GBP/USD drifts back towards trendline support

GBP/USD has been drifting lower over the course of the past two weeks, with the pair moving back into a confluence of the ascending and descending trendlines.

The moving average and trendline support coming into play thus far this morning does highlight the potential for a rebound from this level. Thus, the outlook will ultimately be borne out of whether the price rebounds or breaks below this cluster of moving average and trendline support. Given the consolidation seen over recent weeks, it is likely that the short term brings another rebound back towards resistance.

USD/JPY turning higher from ascending trendline

USD/JPY has been grinding higher over much of the past two months, with the latest bout of weakness in early June taking us back into trendline and moving average support.

With the price gradually moving higher from that area of support, there is a strong chance we see the pair continue its ascent from here. Such a move would look to take us into trendline resistance. With that in mind, a bullish outlook is in play unless we see trendline and simple moving average (SMA) support broken.

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