EUR/USD under pressure and USD/JPY recovers, while GBP/USD holds steady
A strengthened dollar has lifted USD/JPY again, while putting pressure on EUR/USD. For now, sterling appears to be holding its ground against the dollar.
EUR/USD in retreat from recent highs
Two days of losses in EUR/USD and a retreat from the 50-day simple moving average (SMA) $1.1169 point towards a potential lower high and the beginning of a new leg lower for the pair. This would bring $1.08 into view, the low from the beginning of March into play. Stochastics have rolled over too, suggesting this downtrend has further to run.
GBP/USD steady despite losses
GBP/USD price has managed to hold its ground despite coming under some pressure on Friday. As yet further losses have not materialised, although a drop below $1.305 would mark a bearish development. Buyers will want to see a move back above $1.318 to open the way to a potential challenge of the highs from the second half of March, around $1.328.
USD/JPY pushes higher
Friday’s jobs report strengthened the dollar, reversing some of the recent losses. It looks like USD/JPY may push back to the late March highs, despite the apparent overextension of the rally indicated by the yawning gap with the 50-day SMA ¥117.10. Sellers would need to push the price back below ¥121.20 to suggest a nearterm retracement is underway.
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