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EUR/USD still rallying, as GBP/USD and USD/JPY drop back

While EUR/USD continues to climb in the wake of the ECB meeting, GBP/USD is slipping lower and USD/JPY has now moved into a ranging phase.

EUR/USD still in uptrend

We have seen EUR/USD establish a lower high, dropping back after a sharp bounce ahead of yesterday’s European Central Bank (ECB) meeting. But losses have been contained around $1.138, and a fresh push higher may target $1.142 and short-term trendline resistance.

There is little sign of a bigger change in trend, which would likely need a reversal below $1.132 in the first instance.

GBP/USD looks for support

Having established another lower high, GBP/USD is now testing rising trendline support from Tuesday’s low. This held yesterday, but if we see continued losses, the bearish view will receive further reinforcement.

A more bullish view needs to see the price recover above $1.26 and then take out trendline resistance around $1.262.

USD/JPY falters at resistance again

Despite the rebound from ¥106.70 for the third time in just over a week, the best that can be said for USD/JPY is that the downtrend from the beginning of the month has now moved into more of a range-bound phase.

Dips towards ¥106.70 have found buyers but gains have run out of steam some 70 points higher. For the moment, this range looks to be the way to look at USD/JPY, with a break higher or lower needed to establish, or indeed re-establish, a trend.

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