Dollar weakness drives EUR/USD and GBP/USD upside, while USD/JPY continues to drift lower
Dollar weakness continues, with EUR/USD and GBP/USD on the rise, as USD/JPY drifts lower.
EUR/USD rallies into major confluence of resistance
EUR/USD has managed to push higher once again on Friday, with the pair driving out of its recent retracement phase.
However, that rally has taken us into a key resistance zone, with the March peak of $1.2113, 76.4% Fibonacci resistance, and prospective descending trendline all converging around this area. With that in mind, todays outlook will depend on the ability or inability to break through this zone.
GBP/USD continues to build from 61.8% support
GBP/USD has been showing signs of a potential bullish resurgence, with the recent rally into the $1.40 handle raising expectations over forthcoming price action. That raises the likeliness that the recent decline is simply a retracement before we head higher once more.
With price turning higher from a confluence of the 61.8% Fibonacci retracement and 200 simple moving average (SMA), there is a good chance we continue to push higher from here. However, we would ultimately need to break below $1.3716 to negate the idea that we could be on the cusp of a bullish resurgence
USD/JPY continues to drift lower after bearish break
USD/JPY managed to break below the crucial ¥108.34 support level last Monday, and we have seen the pair grind lower ever since.
While the downtrend may not be the most inspiring move, it has been very consistent thus far. As such we are likely to see this bearish pattern continue its decline as long as we do not break through the ¥108.14 swing high established on Friday.
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