EUR/USD, GBP/USD, and USD/JPY all at risk of another turn lower
EUR/USD and GBP/USD are attempting to regain ground, but risk another decline given prior weakness. Meanwhile, USD/JPY is also at risk following a rise into trendline resistance.
EUR/USD rising from intraday support
EUR/USD has been attempting to regain ground over the course of the past week, following a sharp decline in the wake of the 16 June Federal Open Market Committee (FOMC) meeting. Overnight trade saw the pair fall back into the intraday support level of $1.1919, raising the risk of a fresh bearish turn if we break back below that level.
While we are seeing the price rise from that key support level, we would need to break through $1.1975 to provide a bullish continuation signal. Until then, there is a chance we could start seeing the bears come back into play once again if we break $1.1919 support. For now, keep an eye out for whether the price respects the confluence of 200-hour simple moving average (SMA) and trendline resistance as a gauge of sentiment.
GBP/USD rallies into trendline and SMA resistance
GBP/USD has last been gaining ground in early trade, yet that rise has taken us into a confluence of a descending trendline and 200-hour SMA resistance. The recent Bank of England (BoE)-led decline took the price back down towards the $1.386 swing low, although that level has not been broken as things stand.
Nonetheless, a move through that support level would raise the likeliness of a wider downward turn coming into play for the pair. With that in mind, the question of whether we reverse lower from this confluence of resistance is going to be key in determining whether we continue to move lower towards $1.386 or not.
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USD/JPY turning lower after rally into trendline resistance
USD/JPY has been gradually turning lower after a rally into trendline resistance.
The latest rally saw the price turn lower from the 76.4% Fibonacci resistance level on Friday. With that in mind, further downside looks likely from here, with a rise up through the ¥111.11 level required to bring about a more bullish view.
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