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EUR/USD, GBP/USD, and USD/JPY see brief dollar rebound

EUR/USD, GBP/USD, and USD/JPY show a brief fightback for the dollar, but recent trends do highlight the potential for further greenback weakness.

EUR/USD pauses at key resistance

EUR/USD has managed to regain ground to bring price back into the crucial $1.199 resistance level yesterday, with the pair pausing below that threshold. The ability or inability to break through this level will be key in determining where we go from here.

To the downside, the intraday uptrend means support comes in the form of $1.1922 and $1.1906, where a break below $1.1878 would be required to negate the recent bullish trajectory.

GBP/USD falls back into Fibonacci support

GBP/USD has been attempting to regain ground following a decline into the $1.367 support level a week ago. The respect of that level provided us with a week of gains, yet much of that rebound has been wiped out overnight.

Crucially, we have seen this pull back respect the 76.4% Fibonacci support level at $1.3694 this morning, with price starting to turn higher. As such, there is a good chance we see a continuation of this recent rebound, with a break back below $1.3694 required to signal a likely extension of the wider bearish trend from here.

USD/JPY wedges towards key support

USD/JPY has been on the back foot over the course of April thus far, with the pair moving towards the key ¥108.34 support level. A break below that point would see a wider bearish signal coming into play for the pair.

However, until we see that level breaks, the falling wedge pattern currently in play does highlight the possibility of a bullish reversal before long. We would need to see a break-up through the ¥109.75 to bring about greater confidence of that bullish breakout. As such, sentiment will be dictated by whether we break through ¥108.34 or ¥109.75 from here.

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