EUR/USD and USD/JPY reach resistance, while GBP/USD trends upward
EUR/USD and USD/JPY rally into key resistance with bears expected to return. Meanwhile, GBP/USD continues to outperform.
EUR/USD runs into confluence of SMA and Fibonacci resistance
EUR/USD has managed to regain ground over the course of the past week, with last Monday providing the low point off which the pair has built itself. However, we are at risk of seeing a new high of the week this time around, with the price having rallied into a confluence of the 200 simple moving average (SMA) and 76.4% Fibonacci resistance levels.
With the pair having created lower highs over the course of 2021 thus far, there is a good chance we see the pair turn lower once more from here. A break through the $1.2223 swing high would be required to bring the wider bullish trend back into play from here.
GBP/USD uptrend remains intact despite deep pullback
GBP/USD saw a deep retracement on Friday, taking the pair back towards the $1.3623 swing low.
However, with the price turning higher from that point, the intraday uptrend remains intact here for GBP/USD. With that in mind, further upside looks likely, with a break back below the $1.3623-$1.3536 zone required to negate that view.
USD/JPY showing signs of bearish reversal despite Friday gains
USD/JPY has managed to claw back some of its recent losses, with the pair having broken below the key ¥193.52 swing low on Wednesday. The pair trades within a bearish long-term trend, which appears to be coming back into play here.
As such, the breakdown through support points towards that wider bearish 2020 trend kicking back into play. With that in mind, the latest rally into 76.4% resistance is likely to bring about a fresh bout of selling. As such, a bearish view is in play where a break through the ¥104.08 resistance level is required to negate that outlook.
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