EUR/USD and GBP/USD on the rise as USD/JPY eases back
EUR/USD and GBP/USD continue their grind higher, while USD/JPY starts to ease back from a key historical resistance level.
EUR/USD continues to consolidate within recent recovery
EUR/USD has been on the rise of late, with the pair regaining lost ground in the wake of four-months’ worth of declines. This tallies up with the shift into risk assets of late, denting demand for the dollar. Nonetheless, there is a strong chance we see the bears come back into play before long, with the recent 61.8% Fibonacci level providing the near-term resistance at $1.1667.
That tallies up with the late-August low of $1.1663. As such, the current period of upside does look at risk given the wider downtrend. However, it may make sense to await a breakdown through trendline and swing low support to bring that bearish picture into play once again. Until then, this short-term uptrend does still remain intact.
GBP/USD pushing higher as we head towards resistance
GBP/USD has been on the rise over the course of October, with the price continuing to push back towards the key $1.3913 swing high. A break up through that level would bring an end to the wider downtrend in play.
With that in mind, the recent push up towards that level is important for its wider context. For now we have a clear intraday trend of higher highs and lows. A break below the $1.3742 swing low would bring about a fresh bearish outlook. Until then, further upside looks likely to continue as we push towards resistance.
USD/JPY easing back from long-term resistance
USD/JPY has struggled to maintain its upward trajectory after rallying into the 2017 high of ¥114.73.
The break below ¥113.87 support highlights the potential for a period of downside from here. From a wider context, further upside does look likely before long. However, there is a chance of short-term downside until ¥114.73 is broken.
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