EUR/USD quiet and GBP/USD slumping while USD/JPY rallies
Losses are accelerating for GBP/USD, while EUR/USD is quiet and USD/JPY continues its gains for the month of July.
EUR/USD still under pressure
EUR/USD has continued to decline, although it is yet to move below $1.12. Any short-term rebound would need to close back above $1.13 to suggest a bigger move higher is underway, since this is the area that was strong resistance before Friday’s sharp drop.
Below $1.12, and then below $1.119, the mid-June low, the price will push lower, to the May low at $1.1118. A recovery above the 50-day simple moving average (SMA) of $1.124 would provide some near-term bullish momentum.
GBP/USD back to December 2018 low
A new low in the downtrend from the mid-June high sees GBP/USD return to the $1.25 area, the December 2018 support.
Selling intraday rallies has been the approach here since the middle of June, and a rebound towards $1.252 may well provide another such opportunity. Further declines head towards $1.2366 and then on to $1.20.
USD/JPY continues July rally
The rally since the end of last week has created a new higher high for USD/JPY, as it pushes up from the late-June low.
The pair has staged an impressive turnaround, and now it needs to hold above ¥108.80 to clear the mid-June resistance area. Above this, ¥109.55 becomes a target. Pullbacks towards ¥108.00 and rising trendline support from the June low may provide a fresh buying opportunity.
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