EUR/USD and GBP/USD weakening, while USD/JPY rallies
USD/JPY is still looking to push higher, but EUR/USD and GBP/USD are under threat as recent weakness intensifies.
EUR/USD back to August lows
EUR/USD has almost completely retraced the early August bounce, with shorts coming in to push the pair back down over the past week.
A bounce from above $1.105 would create a possible double-bottom, and target the $1.122 highs from last week. Further declines below $1.10 would be a significant bearish development and open the way to the May 2017 lows at $1.085.
GBP/USD bounce under threat
After a brief bounce above $1.21, the GBP/USD pair looks to be headed lower once more.
The price ran out of steam around $1.217, the highs from early August, and fresh declines seem likely, with the August low of $1.2025 the first target. A push below $1.2084 would imperil the sequence of higher lows seen since last week, and suggest that the sellers are back in charge.
USD/JPY still rallying
In contrast to the previous two pairs, USD/JPY may soon provide a buying opportunity.
Having pushed higher over the past week, the price has dropped back from resistance around ¥106.70. A possible higher low is being created, with a bullish crossover in hourly stochastics potentially providing a short-term buying opportunity. The longer-term picture remains bearish, with the pair having carved out lower highs since April.
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