EUR/USD, GBP/USD and USD/JPY on the rise once again
EUR/USD, GBP/USD and USD/JPY head higher, but will haven demand continue to wane or could we be due another dollar resurgence?
EUR/USD rolling over as bears return
EUR/USD has been on the back foot for much of the past four months, with the pair falling back into a 14-month low last week. While easing dollar haven demand saw the pair regain lost ground later into the week, we are already seeing the bears come back into play here.
A break up through the $1.164 level would bring about a potential move into trendline resistance. However, there is a good chance that we see the bears come back into prominence before long, with a break below $1.1524 bringing a clear end to this retracement phase.
GBP/USD breaking higher as BoE gear up to hike
GBP/USD has been on the rise of late, with the pair breaking through $1.375 resistance on Friday. Comments from Governor Bailey over the weekend built the case for the 2021 rate hike, with rising inflation clearly a concern. There is still a possibility we are watching a bearish retracement here, with the 76.4% Fibonacci resistance level up ahead to consider ($1.3795).
However, with the pair on the rise, it makes sense to follow the intraday uptrend until we see that broken. With that in mind, bullish positions are favoured above the $1.3667 swing low.
USD/JPY uptrend continues, with bulls expected to remain in charge
USD/JPY has been pushing higher over the course of the past month, with the pair reaching a fresh three-year high. This bullish trend has taken us back in towards the 2018 high of ¥114.56. That path does look likely to continue unless we see the price fall back below the ¥113.21 swing low.
With resistance up ahead, a break through ¥114.56 would bring about a fresh buy signal. Meanwhile, a drop back below the ¥113.21 level would bring about a fresh short-term bearish signal for the pair.
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