EUR/USD and GBP/USD move lower as USD/JPY bounces from support
Signs of risk aversion appear to be growing, as EUR/USD and GBP/USD both continue to fall.
EUR/USD continues downward move
EUR/USD has pushed steadily lower over the past week, with the rally into Tuesday’s session resolving into another downward move.
A small overnight bounce towards $1.126 has started to turn lower and with stochastics on the hourly chart rolling over from elevated levels, a fresh push lower could be in the offing. $1.12 is the first target, and below this a lower low is created. A rally through $1.125 is needed to provide a more bullish view.
GBP/USD drops in early trading
GBP/USD has come under pressure in early trading, as the drift lower overnight threatens to turn into something bigger.
$1.245 becomes the first target, and below this $1.238 comes into view. Bulls will need to push the price on above $1.2616 to clear trendline resistance from last week’s highs.
USD/JPY holds support but still in narrow range
For the second time in a week, the USD/JPY pair has been able to bounce from ¥106.70.
If this continues to hold then bulls need to push on through ¥107.60, which marked the peak throughout the past week. A break in either direction will provide the longer-term signal for a bigger move either higher or lower.
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