Dollar strength likely to drive EUR/USD, and USD/JPY, while GBP/USD fights back

EUR/USD on the slide after rally into key resistance

EUR/USD has been on the back foot following a rally into the prior swing low of $1.1992. That always looked to be a likely retracement before we see the bears come back into play.

Thus the current pullback looks like a continuation of the bearish trend that has been playing out over the past three weeks. A move up through the recent swing high of $1.1952 would bring about a potential wider rebound for the pair. Until then, further short-term declines look likely for this pair.

GBP/USD starts to regain ground within consolidation phase

GBP/USD has seen a rare phase of weakness of late, with dollar gains driving the pair out of its intraday uptrend. With wider uptrend still remains intact, pointing towards a potential resurgence before long.

The current consolidation phase is key here, with the latest pullback taking us towards the lower end of the recent range. With that in mind, the bulls are likely to come back into play around these levels.

Be well aware of potential volatility ahead, with the Federal Reserve (Fed) and Bank of England (BoE) both coming into the fold over the space of 24 hours. A break below the $1.3779 level would bring about a fresh bearish outlook. Until then, the consolidation phase looks likely to continue with a near-term push higher.

USD/JPY looks to continue uptrend despite after recent consolidation

USD/JPY has been regaining ground overnight, with the pair looking to eventually drive out from this recent period of consolidation.

Given the convincing uptrend seen of late, further upside looks likely before long. As such, a bullish outlook holds unless we see a break back below the ¥108.34 support level.