EUR/USD, GBP/USD and USD/JPY expecting further dollar strength
Dollar strength looks likely to take hold yet again for EUR/USD, GBP/USD, and USD/JPY.
EUR/USD turning lower from key resistance
EUR/USD has managed to rise back into the $1.1754 resistance level, which represents both the prior support levels from August and September, alongside yesterday's peak.
The topping pattern seen over the course of recent weeks looks to have set us on a more bearish course, and thus we are likely to see further losses take shape before long. As such, a bearish outlook is in play here, with a rise through the $1.1872 level required to negate that view.
GBP/USD rallies back into 76.4% Fibonacci level
GBP/USD has rallied back into the 76.4% Fibonacci retracement level this morning, following on from yesterday's decline from that same level.
With the pair weakening once again, the downtrend looks likely to kick in once again. A break back below yesterday's low of $1.2805 would bring greater confidence of a move back towards the $1.2673 low. Ultimately we would need to see $1.3007 broken to negate this bearish outlook.
USD/JPY turning higher after recent pullback
USD/JPY is once again turning higher, with the recent uptrend looking set to continue.
With a wider bearish trend likely to come back into play at some point, the 76.4% Fibonacci resistance level at ¥105.95 will be a notable level of resistance that could cap further gains. However, we ultimately need to see the intraday trend of higher lows negated to bring a bearish outlook once more. That means a bullish view holds unless price drops below the ¥105.26 level.
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