Fresh USD weakness lifts EUR/USD and GBP/USD, while pushing down USD/JPY
Despite some comments from FOMC members about needing to push on with hikes, the dollar has edged down again.
EUR/USD prepares to test $1.04 again
EUR/USD attempted bounce yesterday was stymied by a strengthening dollar, but it has moved up again in early trading.
An area of resistance is developing around $1.04, so a move above this zone is needed to open the way to additional upside, allowing the price to build on the bounce from the September lows.
This would then bring $1.064 into view. A move below $1.02 is needed to suggest that the downtrend could be returning.
GBP/USD moves up in early trading
The buyers are attempting to take control again with GBP/USD after two days of losses, setting up an attempt to clear the 200-day simple moving average (SMA) $1.217.
A bounce from current levels would help to put the pair back on an upward footing and restore the bounce from the September lows. Additional upside would target $1.225, the August high, and then on to the June high at $1.2366.
A reversal below short-term trendline support and below $1.19 might point towards some more short-term consolidation, and then bring the 100-day SMA into view.
USD/JPY drops back despite Fed comments
Despite a bounce yesterday, USD/JPY is under pressure once again, heading back towards yesterday’s lows.
Additional declines would bring the ¥135.00 level into view, followed up by the 200-day SMA.
It would need a move back above ¥142.50 to suggest that a bounce is in play, with a break above trendline resistance from the October highs.
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