EUR/USD, GBP/USD and USD/JPY all make gains
Risk appetite in the FX space appears to have recovered, with GBP/USD leading the charge, while EUR/USD moves back above the 50-day moving average and USD/JPY recovers after some hefty losses.
EUR/USD resumes its climb
EUR/USD has managed to move on above the 50-day simple moving average (SMA) at $1.2156 once again, clearing last week’s highs and putting the uptrend back on the right track.
Above $1.22 the way to the January highs at $1.235 is much clearer. Short-term rising support from the late-January low helped the pair create a higher low last week, giving it the strength to push higher, so a drop back below $1.203 would negate this and open the path to the January low once more.
GBP/USD rally keeps on trucking
The GBP/USD’s surge to $1.41 comes as due reward for those longs that held on throughout the second half of January, when it seemed upward momentum had stalled entirely.
There seems little to stand in the way of further gains, as the pair targets the 2018 high at $1.43, and little in the way of any bearish price action. The latter would need a drop back below $1.39. which would bring $1.375 into view as potential support.
USD/JPY recovers after sell-off
For the second time in a month, USD/JPY has seen its run higher dramatically knocked back.
Earlier in February this led to a steady recovery to a new higher high, while now there are some stirrings of recovery as the price moves off yesterday’s low. Sellers would need to get the price back below the early-February low around ¥104.50 to provide a more firm bearish view, while from here a rally targets the 200-day SMA at ¥105.50 and then on to ¥106.10.
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