Dollar declines unlikely to last for EUR/USD, GBP/USD, and USD/JPY
US jobs report weakens the dollar, with EUR/USD and GBP/USD gaining as USD/JPY takes a step back.
EUR/USD attempting to regain ground after jobs report
EUR/USD saw a strong end to the week, with the US jobs report providing a pop for the pair. Despite that rise, we still remain within a clear bearish trend, where a rise through the $1.1884 level would be the first signal that things are starting to turn.
If we did break the $1.1884 level, it would simply look to provide a short-term rebound to retrace the wider sell-off from $1.1975. With that in mind, a bearish outlook holds, with a rise through $1.1884 required to signal even a short-term continuation of Friday’s move higher.
GBP/USD rebounds into Fibonacci resistance
GBP/USD has similarly regained ground in the wake of Friday’s US jobs report, with the price rising back into the 76.4% Fibonacci resistance level. The downtrend remains intact unless the $1.40 handle breaks, although a push above $1.3873 would bring about a potential wider retracement of the $1.40 to $1.3731 sell-off.
Unless the $1.3873 breaks, there is a good chance that we see this pair turn lower once again from here. A move below 80 on the stochastic could provide one signal that momentum is shifting in favour of the bears once more.
USD/JPY decline brings fresh buying opportunity
USD/JPY has been on the back foot since Friday’s peak, with the dollar decline driving the pair towards the 61.8% Fibonacci support level.
With the pair continuing to trend within a pattern of higher highs and higher lows, there is a good chance we will see the bulls come back into play before long. With that in mind, a bullish position holds unless price falls back below the ¥110.42 swing low.
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