EUR/USD heads down while GBP/USD begins to recover and USD/JPY rebounds
It is a day of mixed fortunes across asset markets, although the dollar is stronger in the wake of a recovery in US retail sales.
EUR/USD heads to the downside
After Thursday’s slump here with EUR/USD, the sellers are firmly in control again, and a move back towards $1.166 looks to be on the cards.
The drop below the 50-day simple moving average (SMA) $1.1797 has handed the initiative to the sellers, and now we look for additional losses. A move above $1.18 would be needed to provide more hints of renewed upside for EUR/USD.
GBP/USD holds trendline
While GBP/USD fell back too yesterday following US retail sales, it was able to regain some ground in the latter part of the session.
Buyers will be pleased to see the price has held rising trendline support from the August low, providing hope that a new bounce towards $1.385 can begin.
USD/JPY rebounds after retail sales
Markets can be frustrating places, and sellers will have to relearn this after seeing USD/JPY bounce yesterday following the previous two days of losses that seemed to hand the initiative to the sellers.
The price is edging back above trendline support from the early August low, and with stochastics turning higher once again a new move towards ¥110.35 may develop.
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