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EUR/USD and USD/JPY head lower, as GBP/USD consolidates

EUR/USD and USD/JPY head lower, while GBP/USD consolidates above key support.

EUR/USD breaking lower once more following German court ruling

EUR/USD saw sharp losses yesterday after a German constitutional court ruling signalled likely future battles with the European Central Bank (ECB) over their quantitative easing (QE) programme. This is likely to undermine the euro as we go forward, with further downside looking likely.

With the price falling below $1.0826 support this morning, it is likely that we will see further downside from here, with a bearish outlook in play unless we see a break through the $1.0857 resistance.

GBP/USD failing to muster recovery thus far

The GBP/USD downside has taken us close to a notable support level at $1.2389, with trendline support providing support throughout recent trading days.

With the price falling below that trendline, there is a chance we could start to see another move lower from here. However, it makes more sense to look for a break through either $1.2484 (bullish) or $1.2389 (bearish) to provide a more reliable buy or sell signal for this pair.

USD/JPY breaks key support, with further downside likely

USD/JPY managed to break below the ¥106.36 support level yesterday, bringing lows not seen since mid-March. With the pair moving higher this morning, it looks likely we are looking at another bearish retracement.

As such, it makes sense to look for bearish positions unless the ¥106.62 swing high is broken. With that in mind, the 61.8% and 76.4% Fibonacci retracement levels look attractive for shorts (¥106.46-¥106.52).

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