EUR/USD and GBP/USD show tentative signs of weakness as dollar strength looks to push USD/JPY higher
EUR/USD, GBP/USD and USD/JPY have been on the rise, yet dollar strength could soon drive cable and Eurodollar lower.
EUR/USD rebound under threat after slump into support
EUR/USD respected the 61.8% Fibonacci resistance level once again yesterday, with the recent period of consolidation clearly struggling with the $1.1663 to $1.1667 resistance zone.
From a wider perspective, there is a clear bearish trend in play for this pair. However, a break below the $1.1571 swing-low would provide greater confidence that the wider bearish trend is kicking in once again. Until then, it makes sense to see if the confluence of the 100-simple moving average (SMA) and 76.4% Fibonacci levels ($1.1595) hold as support or not.
GBP/USD rally starting to show signs of potential weakness
GBP/USD has been on the rise over the course of October, with the pair pushing into a fresh one-month high last Wednesday.
However, we have seen the price fall back since then, with the price breaking tentatively below the $1.3742 swing-low. A more convincing move below that level would bring about a signal that we could soon see the pair reverse lower given the wider bearish trend in place since the beginning of June. Alternatively, a rise up through $1.3834 would point towards a bullish continuation from here.
USD/JPY on the rise after retracement into 76.4% support
USD/JPY has been regaining ground over much of the past month, with the pullback seen towards the back-end of last week representing a short-term blip in that move. Coming off the back of a rise into the crucial October 2017 peak of ¥114.73, it should perhaps come as no surprise to have seen some consolidation at such an important resistance level.
Nonetheless, we are seeing the price turn upwards once again here, coming off the back of a decline into the 76.4% Fibonacci support level. A break back below ¥113.00 would signal a potential wider pullback coming into play. Until then, it looks as if we could have another push into that crucial ¥114.73 level in a bid to form a fresh four-year high and extend this ongoing uptrend.
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