EUR/USD gains falter as GBP/USD and USD/JPY come under pressure
The rebound in EUR/USD has run into resistance, while GBP/USD and USD/JPY have both declined in recent sessions.
EUR/USD bounce hits a speedbump
The bounce of EUR/USD from the lows of last week has stumbled at the 200-day simple moving average (SMA) at $1.1885, with the price failing to hold its gains from yesterday. A reversal has yet to develop however, and the pair is holding its ground for now ahead of European Central Bank (ECB) minutes today.
Thus we could see a reversal, but for now there is insufficient evidence for this. A drop below $1.18 would provide further reinforcement of this view, while continued gains above $1.19 clearly hint at a move towards the 50-day SMA ($1.1973).
GBP/USD edges higher after two days of losses
Losses of GBP/USD have stalled above $1.37, avoiding for now a drop below the late March lows.
The uptrend of the past ten months has come under heavy pressure, so a recovery back above $1.385 would be a welcome development for the buyers. Alternately, the sellers will want to see continued declines below $1.367 that will clear the lows of March and open the way to further downside.
USD/JPY heads lower as dollar weakens
A fresh decline of USD/JPY has seen the price edge below Wednesday’s lows, and further losses towards ¥108.50 or even ¥107.50 seem likely. A recovery above ¥110.00 would provide a more bullish outlook, but for now the sellers appear to hold sway.
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