Dollar on the rise for EUR/USD, GBP/USD and USD/JPY
Dollar gains ground, as haven demand sees the green back gain traction in EUR/USD, GBP/USD, and USD/JPY.
EUR/USD easing back as risk aversion helps the dollar
EUR/USD weakening after a positive Friday session, with early declines in stocks today bringing upside for the dollar.
The question from here is whether we break the $1.1787 support level to bring expectations of a wider decline to retracement the $1.1688-$1.188 move. As such, while the recent bullish trend remains intact, there is a good chance we could see further downside if price breaks below $1.1787.
GBP/USD pulls back into Fibonacci support
GBP/USD has similarly been under pressure in early trade, with the pair moving back into a confluence of Fibonacci and trendline support.
Given the recent uptrend, we would need to see a break below the $1.2861 support level to bring a more confident bearish outlook. Until then, there is a good chance we could see the pair turn higher once again as traders straddle the hope of a Brexit breakthrough with haven demand as Covid-19 cases rise.
USD/JPY resurgence unlikely to last
USD/JPY is on the rise, following a period of downside which completed a bearish head and shoulders formation. That break below ¥105.03 support provides a clear bearish signal within a wider long-term downtrend.
With that in mind, the current rise looks likely to falter once again. As such, while we could see further short-term upside, a deeper retracement would provide a better selling opportunity. That bearish outlook remains in place unless we see a rise through ¥105.74.
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