Dollar resurgence could be on the cards for EUR/USD, GBP/USD, and USD/JPY
The dollar looks primed to strengthen after recent declines, with potential reversals for EUR/USD, GBP/USD, and USD/JPY in the offing.
EUR/USD rise brings us back towards Fibonacci resistance
EUR/USD has been gaining ground over the course of the past week, with the pair rising back into the 76.4% Fibonacci resistance level overnight.
Despite the recent break through trendline resistance, we are looking at a possible short-term retracement set within a multi-month downtrend. With that in mind, it makes sense to watch out for a potential bearish reversal from here. That bearish outlook holds unless the price breaks up through the $1.1989 swing high.
GBP/USD reverses from Fibonacci resistance
GBP/USD has been hit hard in early trade today, with the pair breaking below the $1.3811 swing low to end the trend of higher lows. Coming off the back of a rise into the 76.4% Fibonacci resistance level at $1.3923, this break below support points towards a potential bearish phase coming into play once again.
That being said, with the stochastic turning higher, there is a chance we will see a short-term rebound to take a breather from this decline. Nevertheless, until we see a break up through the $1.4001 resistance level, there is a good chance we will soon see the pair reverse lower once again.
USD/JPY pullback could bring buying opportunity
USD/JPY has been on the back foot over the course of the past week, with the pair seeing another sharp pullback yesterday.
However, the uptrend remains intact despite this period of weakness. With that in mind, this current decline looks to provide a potential buying opportunity within an impressive uptrend. A break below ¥108.40 would be required to bring an end to that bullish outlook.
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