EUR/USD and GBP/USD rally as USD/JPY falters
In the wake of Jackson Hole the dollar has weakened, allowing EUR/USD and GBP/USD to move up while holding back USD/JPY.
EUR/USD surge keeps on going
The rebound with EUR/USD continues, marking a strong recovery from the lows of two weeks’ ago.
Further gains head towards trendline resistance from the June peak, and then on to $1.19 and $1.196. Sellers have yet to see much in the way of a decisive break lower, and will have to wait to see whether bullish momentum begins to ease in coming sessions.
GBP/USD heads to trendline resistance
The bounce of the past week with GBP/USD has neared trendline resistance from the August highs, which could point towards a renewed turn lower, but for the time being the sellers remain firmly in control.
Further gains target $1.385, and then on towards $1.40. At present there is little price action to suggest a near-term lower is at hand.
USD/JPY edges back from Monday gains
A turn lower with USD/JPY in early trading reverses some of Monday’s gains, and raises seller hopes that the price may move below the lower bound of the current triangle formation, amplifying the bearish view.
Alternately a recovery above ¥110.20 would put the buyers back in charge.
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