EUR/USD, GBP/USD and USD/JPY all go into retreat
FX markets have been hit by risk aversion, with EUR/USD under particular pressure following fresh weakness in eurozone PMIs.
EUR/USD hit by weaker PMIs
Purchasing managers index (PMI) figures from the eurozone have sent EUR/USD tumbling, with the rally towards $1.107 from mid-September looking like a lower high.
Weakness throughout the month so far found buyers around $1.093, so we may see some support around here, while further declines head towards $1.085. The bearish view remains in pace unless we see a move above $1.112.
GBP/USD creates lower high
After an impressive bounce over the past four weeks, GBP/USD may be headed lower.
Weakness last week found support around $1.24, so a move through this area is needed to confirm the bearish view, but with daily stochastics rolling over momentum appears to be shifting towards the bears. A move back above $1.25 is needed to reverse this impression.
USD/JPY rolls over
The dollar has slipped further this morning, continuing USD/JPY's broadly bearish theme of the past few days.
As with GBP/USD, daily stochastics have rolled over, and moving average convergence/divergence (MACD) may follow it, confirming the bearish view. Rallies towards ¥108.00 may provide intraday selling opportunities, but the bearish view remains in place unless the price close above ¥108.10.
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