Dollar strength propels EUR/USD and GBP/USD lower, while USD/JPY rockets through key level
EUR/USD drops for a second day
After rallying early on Tuesday the EUR/USD price reversed course, falling back below the declining 50-day simple moving average (SMA).
If this marks a lower high then a renewed fall below $1.053 would then see the price fall towards its October lows, and reinvigorate the downtrend. Buyers will need a move back above $1.065 to indicate a potential recovery has begun.
GBP/USD edges lower
The GBP/USD also saw its (more limited) gains ebb away on Tuesday, leaving it hovering just above $1.21. This area provided some support over the past two weeks, but the ongoing failure to break higher seems to point towards a renewed run of losses that could see the pair head towards $1.20.
A break above $1.22 would see the price push on above short-term trendline resistance from the mid-October high, and also above trendline resistance from the July peak.
USD/JPY hits new 2023 high
Yesterday saw the USD/JPY surge through the ¥150.00 barrier, closing above it and above ¥151.00,
This has resulted in a bullish moving average convergence/divergence (MACD) crossover, as momentum revives, but could result in volatility given the challenge to the Japanese finance ministry’s previous comments about supporting the yen around ¥150.00. Nonetheless, a break towards the 2022 highs just below ¥152.00 is now underway.
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