EUR/USD and GBP/USD head lower but USD/JPY looks for gains
Risk aversion has hit EUR/USD and GBP/USD, while USD/JPY is moving cautiously higher.
EUR/USD lurches below recent lows
Fresh risk-off moves have driven EUR/USD below the lows of January, and look set to push the price further towards the lows around $1.08. The loss of key support at $1.12 and then at $1.11 puts the sellers firmly in charge.
Intraday rallies continue to be met with selling pressure, and it would take a move back above $1.12 to suggest that at least a short-term low was in play.
GBP/USD heads back down
The move up with GBP/USD on Friday and into Monday has been entirely reversed, and now last Thursday’s low at $1.3272 is in sight. Below this December’s low at $1.32 comes into view, as risk aversion grips markets.
A loss of December’s low will result in fresh lower lows, amplifying the bearish view.
Greenback strength lifts USD/JPY
US dollar strength has meant that USD/JPY has managed to move back above the 50-day simple moving average (SMA) in early trading, recouping Tuesday’s losses. From here trendline resistance at ¥115.60 comes into view, and then last week’s high at ¥115.70, followed up by ¥116.30, the highs of the year so far.
Sellers will want to see a reversal back below ¥114.40 to suggest that fresh declines are likely.
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