USD/JPY slumps again and EUR/USD comes under fresh pressure, but GBP/USD holds above $1.29
The yen continues to strengthen against the dollar, while both the euro and sterling have lost ground against the dollar.
EUR/USD in retreat
The EUR/USD price has fallen further towards the 200-day SMA (currently $1.0836) as risk-off sentiment builds across markets.
Momentum has shifted to the downside, with a test of the 200-day now looking likely. A close below the 200-day would open the path towards rising trendline support from the April lows, down towards $1.07.
Buyers need a close back above $1.085 to indicate that a short-term low has formed.
GBP/USD edges lower
The GBP/USD declines have been more muted here, with the price still above the June highs.
For the moment, the sellers are in control. After the strong rally of late June, the price may well head towards $1.28 and then to the 50-day SMA. But this would still leave the bullish view intact.
A close back above $1.294 would help support a renewed bullish view in the short-term.
USD/JPY hits 12-week low
USD/JPY continues to slump, and has fallen to its lowest level since early May.
The price is now below the 100-day SMA for the first time since March, putting a real dent in the downtrend. The next level to watch becomes the ¥151.94 highs from March, which acted as support in early May.
A close back above ¥156.00 might suggest that a low has formed and that a new leg higher could begin
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