EUR/USD and GBP/USD climb as USD/JPY turns lower
Dollar weakness continues to be felt across FX markets, bolstering EUR/USD and GBP/USD but keeping USD/JPY on the back foot.
EUR/USD rally shows no sign of slowing
The euro continues to make hay against the US dollar. Higher lows and higher highs continue to be seen here for EUR/USD, with the bounces off the rising 50-hour simple moving average (SMA), currently $1.1687, on Thursday and Friday providing proof of the trend’s current strength.
Further gains seem likely, with no sign of any reversal yet developing.
GBP/USD keeps on climbing
After breaking through $1.277 last week the price of GBP/USD has not looked back, surging to $1.29.
Some overnight weakness leaves the uptrend intact however, and it is likely that higher lows will continue to be looked on as possible buying opportunities. A reversal back below $1.277 might suggest some near-term weakness, potentially testing $1.265 again as it did last week.
USD/JPY rebounds towards higher low
An overnight bounce for USD/JPY merely provides fuel for short-sellers as the price rallies back towards the declining 50-hour SMA (¥105.70).
After the straight-line move of last week some form of rebound was to be expected, but it merely provides a better risk-reward for short positions. A rally through ¥106.20 is needed to put a more meaningful dent in the downtrend.
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