Will dollar strength continue for EUR/USD, GBP/USD and USD/JPY?
EUR/USD, GBP/USD, and USD/JPY have been driven by the recent dollar resurgence. But will that continue?
EUR/USD downturn looks likely to continue
EUR/USD has been on the slide following a bearish reversal breakdown seen earlier this morning.
The drop below $1.1737 seemingly paves the way for a more bearish phase, with further losses expected from here. That bearish outlook remains in play unless we see a break through the $1.1687 resistance level.
GBP/USD consolidating after recent losses
GBP/USD has seen plenty of downside over the course of September thus far, with the pair set on a new path with the break below $1.3053.
That bearish trend looks likely to continue despite the current consolidation, with a rise through $1.3007 required to negate that outlook.
USD/JPY rise could result in another leg lower before long
USD/JPY has been on the rise over the course of the past week, with the dollar coming back into prominence after a period of weakness.
For this pair, we have a clear wider downtrend in play, and that remains the case despite short-term gains. With that in mind, another leg lower remains the most likely event unless we see a break above the ¥106.55 swing high. Watch for a break below the ¥105.24 level to bring a bearish picture into play once again. Until then, the short-term uptrend remains in play.
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