EUR/USD, GBP/USD and USD/JPY turn lower after recent gains
EUR/USD, GBP/USD and USD/JPY turn lower after recent gains, but will we ultimately reverse higher once again?
EUR/USD breaking lower after recent rally into key resistance
EUR/USD has started to reverse lower, following a period of strength that took the pair up into the key $1.1908 resistance level on Friday.
However, the subsequent move lower has taken us back below both $1.1855 and $1.1834 support, bringing expectations of further weakness. That bearish short-term view holds unless the price rallies up through $1.1885 resistance.
GBP/USD falls back below Fibonacci support
GBP/USD has also been on the back foot, with the price turning lower from a confluence of $1.3888 horizontal resistance and the 76.4% Fibonacci resistance level.
A break below the $1.3731 level would certainly bring greater confidence in this potential bearish turnaround following a move below trendline and Fibonacci support.
However, until that happens, there is still a chance this is simply a retracement phase within a GBP/USD recovery.
USD/JPY turning lower from key resistance level
USD/JPY has been on the rise over the start of the week, with the price rising into the peak of ¥110.40 established a week ago. This builds a picture of a potential bullish breakout coming into play following a symmetrical triangle consolidation period.
While we are looking at a potential move lower in a bid to continue this consolidation phase, there is a growing case that we will see the price break higher before long. A rise through ¥110.42 brings greater confidence in such a move.
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