Dollar weakness unlikely to last for EUR/USD, GBP/USD, and USD/JPY
The dollar is weakening ahead of the FOMC meeting, but recent patterns suggest another downside move for EUR/USD and GBP/USD, while USD/JPY is expected to recover.
EUR/USD likely to falter again
EUR/USD is on the rise this morning, with the pair attempting to regain the ground lost on Friday. However, the lack of upward momentum does highlight the high likeliness that we will soon enough see the price roll over once again.
With that in mind we look likely to see this recent trend of lower highs come back into play once again here, with a bearish outlook in play unless the price rises through the $1.2218 swing high.
GBP/USD on the rise, yet bearish move looks likely
GBP/USD has a similar picture, with the recent trend of lower highs and lower lows pointing towards a potential move lower before long.
The pair appears to have rolled over for now, with a break through the $1.4185 level required to bring about a move positive outlook once again. Until that happens, there is a good chance this current rise is met with more selling pressure before long.
USD/JPY rolling over after trendline rally
USD/JPY has been on the front foot following a decline into trendline support. That rally plays into the uptrend seen over the course of the past two-months. While the price is weakening in early trade today, there is a good chance that this move lower provides us with another higher low.
As such, another move higher looks likely before long, although for the near term there is a risk we see some further downward pressure to form a fresh retracement. The bullish trend holds as long as the price remains above the ¥109.19 swing low.
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