EUR/USD and GBP/USD push up as risk appetite revives
Improving PMIs have bolstered EUR/USD, while the pound has returned to $1.25 after yesterday’s gains.
EUR/USD turns higher after weakness
EUR/USD has seen some notable strength over the past 24 hours, rallying from the low around $1.117 to push to its highest level in a week.
If this signals that the pullback from the June peak has run its course, then we look for a push towards $1.135 and $1.14. A higher low above $1.12 would provide another potential entry point for longs, while a more bearish view requires the price to move below $1.12.
GBP/USD rallies to $1.25
We have seen some strength in the GBP/USD pair as the price was able to recover from $1.235.
However, it needs to push on through $1.26 to avoid creating a lower high, and a reversal below $1.245 would signal that the downward move has resumed. Above $1.26 the price pushes on to $1.27 and then targets the early-June highs above $1.281.
USD/JPY fails to stage a rebound
Rallies for the USD/JPY pair have been fleeting over the past week, and the current bounce above ¥107.00 appears to be running out of steam as well.
The rally last week did not last long, however, as support around ¥106.70 firmly held last week. We wait for a move above ¥107.60 to confirm a more bullish view, while a drop below ¥106.60 revives the bearish view.
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