EUR/USD and GBP/USD move higher as USD/JPY retreat goes on
Dollar weakness has given space for EUR/USD and GBP/USD to recover, while USD/JPY continues to retreat from recent highs.
EUR/USD bounces from support
EUR/USD bulls will be hoping that the pair can see its way to a broader recovery now that the price has managed to arrest its decline for the time being. The price has bounced from $1.1524, holding the October low.
A move towards $1.17 could now be contemplated, or at least a move back to the 50-day simple moving average (SMA), currently $1.167. Sellers will be hoping for a renewed drop that challenges $1.1524.
GBP/USD rebounds as BoE disappointment fades
Last week’s sharp decline with GBP/USD has been partly recovered, which will give some hope that a higher low has been created, compared to the September low, and that a new bounce can begin.
Gains will target $1.37 and then onwards towards $1.385. Sellers will view talk of a higher low as contentious at best, and that instead a move back towards $1.34 can test this support zone.
USD/JPY pullback continues
The retreat with USD/JPY from the October highs is still in play, with the price now heading towards the ¥112.00 swing high from late September, and then to the 50-day SMA at ¥111.92.
But the uptrend is firmly intact and we will be on watch for a higher low to be created that will reinforce the bullish view.
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