EUR/USD falters as GBP/USD and USD/JPY move higher
The euro is under further pressure against the dollar, but the pound has held on to its gains for the week. Meanwhile, the greenback has staged a recovery against the yen.
EUR/USD pushes back towards $1.214
Hopes of continued gains have been dashed as the EUR/USD price continues to head towards the 50-day simple moving average (SMA) at $1.206.
This descending channel has been in place since last week, as the pair’s ongoing rally sees its first real weakness in a number of months. Below the 50-day SMA, the price will target $1.189, previous resistance and now possible support, with the 100-day SMA ahead of this at $1.1922.
GBP/USD targets new highs
Tuesday’s recovery in GBP/USD has not been followed up by huge gains, but the price has managed to hold on close to the $1.37 high.
A breakout above $1.3711 would provide more bullish momentum and confirm the strength of the rebound. Sellers have been shut out of the market, and will need to get the price to close below $1.35 to reverse the ongoing bullish view.
USD/JPY recovers ¥104.00
USD/JPY’s drop on Tuesday has been met with fresh buying, indicating that the bounce from the January lows is not entirely at an end.
Buyers will want to push the price on above ¥104.40, while sellers will be aiming to reverse the bounce seen since Tuesday and push the pair back below ¥103.50.
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