Dollar strength holds back EUR/USD and GBP/USD, but USD/JPY makes further gains
The week has begun with more upside for the dollar, resulting in gains for USD/JPY while the euro and sterling are both struggling against the greenback.
EUR/USD stuck below $1.09
The bounce of EUR/USD remains in place here, although the price has demonstrated a notable reluctance to push on above $1.09.
Recent attempts to push above $1.09 have been unsuccessful, but the rally from the lows of March is still in place. This leaves the bullish outlook intact and points towards an eventual move towards the late January highs around $1.10.
For a more bearish view to take precedence, the price will have to drop below the 100-day simple moving average (SMA) once more, and then below the $1.055 lows from the first half of March.
GBP/USD falls back from $1.24
The surge off the lows of March encountered a reverse on Friday of GBP/USD, though buyers have pushed the price off its initial Monday lows.
At some point, the price will need to decide whether it can move on above $1.24, the major hurdle since December. Having revived since the March lows and moved on above the 100-day and 50-day SMAs, the buyers appear in control for the time being, even if a break above $1.24 continues to elude them.
For the moment the bullish view holds sway; It would need a move back below $1.21 to move the outlook to neutral, and below $1.18 for a bearish view to emerge.
USD/JPY reaches 100-day SMA
A revived US dollar has seen USD/JPY push higher over the past week, creating a higher low vis-à-vis January.
Having cleared the downtrend from the March highs, the price is now challenging the 100-day SMA. Above this the next target would be the 200-day SMA, last tested in the first week of March. A move above here considerably reinforces the bullish view.
Sellers will want to see a reversal back below ¥132.00 and then on below the ¥130.00 level to suggest that the bearish outlook is back in the ascendant.
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