EUR/USD and GBP/USD move higher but USD/JPY falls back
The losses in EUR/USD and GBP/USD have stalled for now, bringing hope that a higher low may be forming. USD/JPY has fallen back further, however.
EUR/USD edges back above 50-day MA
Losses with EUR/USD stalled on Thursday giving hope that a low may be forming.
A decline of 350 points from the July highs has yet to bring the uptrend to an end. For this to happen we would need to see lower highs and a drop below $1.08.
A recovery back above $1.10 would help signal that a higher low is in place and that a move back to the July peak could be underway.
GBP/USD ticks higher off Thursday low
GBP/USD dipped to a six-week low after the Bank of England (BoE) decision, but then rallied off its lows.
A higher low could now be in place, but buyers will need to see further gains back above the 50-day simple moving average (SMA) and then on above $1.28 in order to open the way to a new leg higher.
A reversal back to $1.26 and then a close below this negates the potential bullish view and might suggest a new downward move in the direction of $1.24 has begun.
USD/JPY drops back for a second day
Gains with USD/JPY faltered on Thursday, but the overall bounce is intact.
Having rallied sharply from the lows of last week, some weakness was to be expected, but it would need a drop back below ¥140.00 to negate the bullish view.
Additional gains continue to target the June highs around ¥145.00.
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