EUR/USD and GBP/USD head lower as USD/JPY consolidates below resistance
EUR/USD and GBP/USD continue to show signs of impending weakness, while USD/JPY consolidates below key resistance.
EUR/USD remains at risk despite Monday’s gains
EUR/USD has been trying to regain lost ground over the course of this week, coming off the back of Friday’s sharp decline for the pair.
However, with a wider bearish trend in play, that break below $1.1572 does highlight the potential for another turn lower before long. With that in mind, a bearish outlook holds unless the price rises up through $1.1692 resistance.
GBP/USD continues to head lower
GBP/USD is on the back foot ahead of tomorrow’s Bank of England (BoE) meeting. While we are expecting to see the bank raise rates, there are questions over whether the meeting will provide a more dovish stance in regard to future rate movements.
The downward trend of lower highs seen over the course of the past three-months does highlight the potential for a bearish continuation move like the one currently taking place. As such, further downside does look likely, with the continued creation of lower intraday highs key to that. A rise up through $1.3693 would be required to bring about a wider upside move for the pair.
USD/JPY continues to consolidate below key resistance
USD/JPY has been consolidating below the long-term resistance level of ¥114.73 of late. The near-term trend does still remain bullish, but that does raise the risk of a near-term pullback.
However, a decline through ¥113.00 would be required to provide that bearish signal. Instead, we have seen another 76.4% Fibonacci support level come into play here, with the price on the rise since. As such, there is a good chance we remain within this consolidation pattern, with a break through either ¥113.00 (bearish) or ¥114.73 (bullish) bringing a fresh signal for traders.
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