EUR/USD, GBP/USD and USD/JPY expected to be driven by dollar strength
Dollar strength back in play, with EUR/USD and GBP/USD losing ground as USD/JPY turns upwards once again.
EUR/USD expected to continue its decline despite overnight pop
EUR/USD has regained some ground overnight, following a decline through the $1.1529 level to bring a 14-month low.
The overnight rise has done little to bring expectations of a wider reversal for this pair, with a bearish outlook in place until the price breaks up through the likes of $1.1586 and $1.164.
GBP/USD likely to roll over further after the recent 76.4% retracement
GBP/USD has been rolling over from the 76.4% Fibonacci resistance level of $1.367. The wider downtrend remains in place, although it makes sense to watch for a break below trendline and $1.3568 support to bring about a signal that this bearish trend is going to come back into place.
Ultimately we would need to see a break up through the $1.375 level to negate the bearish trend in place over recent months.
USD/JPY turning upwards following brief retracement
USD/JPY has been on a rapid rise of late, with the pair pushing back towards yesterday’s peak of ¥113.79. The uptrend seen over the course of October thus far highlights the potential for another bout of upside from here.
A break up through that ¥113.79 level brings about a fresh bullish signal for the pair. Conversely, we would need to see a drop below ¥113.00 if we were to see a more neutral outlook for the pair.
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