EUR/USD and GBP/USD on the back foot as USD/JPY awaits directional breakout
EUR/USD and GBP/USD head lower after BoE rate decision, while USD/JPY continues to consolidate below key resistance.
EUR/USD stabilizes after Thursday decline
EUR/USD has been on the back foot over the past 24-hours, with the pair heading back into a three-week low yesterday. We are seeing some stabilization this morning, but risks remain for another move lower given the ongoing trend of lower highs.
With that in mind, a bearish outlook holds unless we see the price break up through the $1.1616 swing high. To the downside, a break below $1.1524 would bring a fresh sell signal for the pair.
GBP/USD selloff continues after BoE rate hold
GBP/USD has been hit hard over the past 24-hours, with the Bank of England (BoE) decision to delay their first-rate hike sending the pound spiraling lower. That sell-off is part of a wider bearish trend that highlights the potential for further downside over the near term.
The break below $1.3471 this morning brings expectations of another leg lower, with $1.3411 representing the next notable support level. A move up through $1.3516 would raise the likeliness of a short-term rebound.
USD/JPY consolidates below long-term resistance level
USD/JPY has continued to consolidate off the back of a rally that took us into the notable long-term resistance level of ¥114.73.
For now, we are seeing continued higher lower, which points towards a potential short-term buying opportunity as the price attempts to push back towards ¥114.27 once again. However, the wider picture will only come into play once we see a price break through either ¥113.00 (bearish), or ¥114.73 (bullish).
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