EUR/USD and GBP/USD looking to create higher lows, while USD/JPY eases back after recent gains
Risk appetite is in recovery mode once more, and this has seen the declines in EUR/USD and GBP/USD stemmed for now.
EUR/USD fights to hold above support
The battle to form a higher low goes on in EUR/USD, as the price resists attempts to drive it lower.
For the moment, the $1.092 level continues to hold as support. So long as this is in place, then a fresh leg higher remains a possibility in the short-term. A close above $1.103 accentuates this bullish view.
A close below $1.092 signals a resumed move lower, targeting the 200-day simple moving average (SMA).
GBP/USD continues to establish a higher low
After rallying off the lows yesterday, the price of GBP/USD has begun to recover once more.
A close back above the 50-day SMA would help bolster the bullish view, and perhaps indicate that a new move higher was underway. This might see the price head back to the mid-July highs, or indeed higher.
A close back below $1.265 negates this view and suggests a deeper retracement is likely.
USD/JPY consolidates after gains
Two days of gains have seen the USD/JPY's price move back to ¥143.00. Now we wait to see if the price can make further headway.
Having recovered from the dip last week, the buyers have seized control once more. This puts a move back to ¥145.00 into view.
A close back below ¥141.50 would then indicate a resurgence of weakness, perhaps resulting in a move back to ¥138.00.
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