EUR/USD edges lower, while GBP/USD little changed and USD/JPY holds steady
There is little movement across FX markets, with attention focused on tomorrow’s US CPI reading.
EUR/USD struggles around $1.10
EUR/USD continues to make heavy weather of any upside, unable to push firmly on and hold above $1.10.
However, the bounce remains firmly intact, and would need a move back below $1.09 and below trendline support from September to suggest that a fresh short-term pullback was in play. This might then result in a move to the 50- or 100-day simple moving averages (SMAs).
Bulls need to see a move above $1.103 to suggest that a fresh break to the upside has begun.
GBP/USD at new 2023 highs
GBP/USD price has been able to move on above the $1.241 highs from December, putting new strength into the bullish view.
Additional upside now targets the June 2022 high at $1.2267, while above this $1.30 looms into view, an area that was support back in March 2022.
A reversal at the June 2022 highs might bring $1.24 back into view as support, but even then the broader uptrend is still in place.
USD/JPY steady in early trading
USD/JPY rebounded back above the 50-day SMA after a brief trip below it, the price now targets ¥138.00 once more. This would also see it challenge the 200-day SMA.
A break above here then targets ¥139.00, and then a move above ¥140.00 would help to reinforce the view that a fresh bullish move is in play in the medium term.
Sellers will need to see a drop back below the 100-day SMA and below trendline support from the January low to suggest that the bearish view prevails once again.
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