EUR/USD, GBP/USD, and USD/JPY expected to drift lower
EUR/USD, GBP/USD, and USD/JPY are expected to drift lower, although USD/JPY weakness could be relatively fleeting given the wider channel.
EUR/USD regaining ground from Fibonacci support
EUR/USD has been on the back foot once more, bringing the price back into the 76.4% Fibonacci support level of $1.1878 yesterday. However, the pair is on the rise in early trade today, with the price tentatively rising through the short-term trendline resistance.
While we could see further short-term upside, there is a good chance that this rebound is short-term in nature. As such, a bearish view holds unless we see the price push up through the key resistance levels of $1.1944 and $1.1975.
GBP/USD expected to continue its decline
GBP/USD has turned lower once more this morning, with the pound lagging after last weeks Bank of England (BoE) meeting.
That bearish trend is likely to remain in play as we move forward, with any short-term upside bringing a potential move back into trendline resistance. With that in mind, further downside is expected unless we see the price break up through the $1.3939 swing high.
USD/JPY continues to drift lower within rising trend
USD/JPY has been easing back since rising into trendline resistance, with the pair grinding lower over the past week. For the most part this appears to be a short-term move that at most will bring another retracement before we head higher once again.
With that in mind, watch out for further short-term downside, with the trendline and Fibonacci support zone bringing an area for bulls to come back into play once again (¥110.04-¥110.25). However, it is possible that we front-run that rally, and thus the intraday trend of lower highs is important. With that in mind, a rise through ¥110.76 would bring a potential bullish signal to cut this decline short.
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