EUR/USD comes under pressure as GBP/USD and USD/JPY recover
The euro has failed to make much headway against the dollar, but both sterling and yen have advanced over the past two sessions.
EUR/USD stuck below resistance
While EUR/USD has managed to stop the downward move of last week, it has been unable to break through the $1.185 zone of resistance.
However, with a higher low yesterday there is still scope for a break higher, which would in due course target $1.196. A reversal below $1.178 would negate this view and open the way to $1.171.
GBP/USD targets $1.325
Here the GBP/USD has managed to rally throughout the week, putting it on course to target the $1.325 zone that marked the highs last week.
This impressive recovery revives the more bullish view, although a break out above last week’s highs is still needed to cement this view. For now bears seem to be out of luck, unless we see a reversal that wipes out the gains of the week so far and then breaches $1.305 to the downside.
USD/JPY remains in rising channel
The USD/JPY price continues to adhere to a rising channel, having completed a retracement from the highs seen on Tuesday.
A continued rebound raises the prospect of a move back towards ¥106.60, and then to ¥106.80, and the upper bound of the channel. A drop below ¥105.70 would potentially mark the end of this bullish view and open the way to further downside.
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