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EUR/USD declines while USD/JPY surges amid US-China trade hopes

EUR/USD breaks lower, with USD/JPY on the rise amid growing hope of a US-China trade deal. Meanwhile, GBP/USD continues to consolidate.

EUR/USD breaks below key support level

EUR/USD fell below the $1.1347 support level this morning, seemingly paving the way for a period of declines over the coming days.

The recent trend of higher highs and lows is likely to remain, yet this drop below $1.1347 points towards a likely retracement phase coming into play from here. With that in mind, watch out for a move into the 61.8%-76.4% retracement zone ($1.1269-$1.1235) before the wider bullish trend starts to come back into play.

GBP/USD continues to consolidate

GBP/USD remains within a consolidation phase, with the pair declining back into the $1.2661 support level this morning. A break below that level would signal a likely bearish phase coming into play.

However, until that break occurs it seems likely we will see another move higher to continue this consolidation phase.

USD/JPY rallies into trendline resistance

USD/JPY has been on the climb throughout recent trading days, with the pair moving towards the crucial ¥108.80 breakout level following a shift out of haven assets this morning. However, the wider downtrend remains intact unless we see a break through that ¥108.80 swing high.

With that in mind, watch for whether we start to decline from trendline resistance, with a break through ¥108.80 required to bring about a bullish outlook for the pair.

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