Dollar weaken for EUR/USD, GBP/USD and USD/JPY, but trend likely to kick in once more

​EUR/USD looks to push higher after recent descending channel

EUR/USD managed to exit the recent descending channel pattern, with the price rising back into the key $1.1355 resistance level. A break up through that threshold would bring about a wider bullish phase as it ends the pattern of lower highs.

As such, the ability to break up through $1.1355 will be key to determining sentiment as we move forward.

GBP/USD reverses downtrend, bringing potential for further upside

GBP/USD managed to break through the $1.3289 resistance level, bringing an end to the intraday downtrend seen over the course of the past month.

However, this does simply point towards a potential retracement of the wider selloff from $1.3513. Thus far, we have seen the price rally up into the confluence of the 61.8% Fibonacci retracement level ($1.3379) and the 200-simple moving average (SMA).

A push up through there would signal a potential rise into the 76.4% level at $1.343. However, in either case the upside seen at the moment does still look like a retracement within a wider trend until $1.3513 is broken.

USD/JPY falls back into Fibonacci support

USD/JPY surged into a new December high on Wednesday, with the Federal Open Market Committee (FOMC) meeting bringing home the difference between the US and Japanese monetary policy outlook. However, we are seeing the pair turn lower since, bringing the price back into the 76.4% Fibonacci support level.

A break below the ¥113.22 support level would bring about a more bearish picture. Until then, this pullback looks to represent a buying opportunity once again.