EUR/USD, GBP/USD and USD/JPY all drop back in morning trading
Risk appetite remains muted this morning and so we have seen some weakness in major FX pairs as US markets return to full activity.
EUR/USD retracement goes on
The price has continued to decline with EUR/USD over the past week, and shows no sign of heading high.
However, the 50-day simple moving average (SMA) has provided some short-term support and prevented any significant downside, though a move back below $1.084 would open the way to a more serious correction.
A reversal back above $1.08 might help to rebuild the bullish view and then indicate a fresh move back to $1.10.
GBP/USD rebound stalls
After rebounding from last week’s lows the price has stalled with GBP/USD, but the recovery appears intact.
It will need a reversal back below $1.264 to renew a bearish view, with a break of $1.26 opening the way to the 50-day SMA, and then potentially down to the May lows at $1.23.
Further gains continue to target $1.283, the highs from early June.
USD/JPY edges lower
The price continues to drift lower with USD/JPY, though the overall bounce is intact.
A minor retracement has taken place so far, but there is little sign of any deeper pullback yet occurring despite warnings from the about possible intervention.
Above ¥145.00 the price moves on to target ¥148.90.
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