EUR/USD and GBP/USD make gains but USD/JPY drops back
EUR/USD has pushed further towards $1.10, while GBP/USD has reached a fresh high for the year. Last week’s rally in USD/JPY, however, has run out of steam.
EUR/USD pushes towards February highs
Gains continue here with EUR/USD, with the price still on course to hit the January highs around $1.10.
A move above here will mark a further reinforcement of the uptrend, and would put the price on course for the $1.12 level. Steady gains since mid-March have left the buyers firmly in charge, supported by expectations of a pause in Federal Reserve (Fed) hikes but a continued move higher for the European Central Bank’s (ECB) rates.
A move below $1.08 might suggest a pause for now, while a drop below $1.05 is needed to suggest that the rebound has run its course.
GBP/USD hits new 2023 high
The price has been able to push on to $1.25 for the first time since June last year with GBP/USD.
Continued gains have meant that a higher high has been created and that the buyers remain in charge. Having recovered from the March lows and moved back above the 200-, 100- and 50-day simple moving averages (SMA), a new uptrend looks to be in place.
It would need a reversal back below $1.20 to suggest another attempt to test the 200-day SMA is in the offing.
USD/JPY falls back toward trendline support
The bounce from trendline support that began last week has run its course for now with USD/JPY, as the price drops back below ¥132.00 and another test of trendline support looms.
It would require a move back above ¥133.00 and the 50-day SMA to suggest that a new attempt to move higher is underway.
Alternately, a move below ¥130.00 would see the price test the January lows once more, and suggest that the May 2022 lows at ¥126.40 will be tested.
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