EUR/USD attempting to establish direction around key resistance
EUR/USD sold off sharply from the $1.1720 region on Friday, with the pair shifting away from a crucial area of resistance. The ability to break through the $1.1746-$1.1790 resistance zone is key in determining whether we are set for a bullish breakout or not.
With the price having turned back towards the $1.1609 swing low, watch for a break below that level as a means to ease back on the recent bullish charge. Alternatively, a failure to break below means that there is a strong likeliness of another push higher to continue the recent recovery.
EUR/USD price chart
GBP/USD continues to push upwards
GBP/USD has also retraced, with the pair moving back into trendline support. The recent uptrend points towards another potential shift higher from here, with a break below $1.2979 required to negate this recent rally.
The price is trading within a bearish rising wedge formation, yet it’s worthwhile noting that a breakdown from here is likely to provide a retracement of the rally from $1.2785. However, for now, there is a good chance we will see the market begin to turn higher, in a week that has a host of crucial UK-centric economic releases.
GBP/USD price chart
USD/JPY looks set for pullback
USD/JPY is turning lower at the start of the week, with the pair hoping to move into a retracement phase following recent gains. The key level to watch here is ¥111.75, where a break below this level would point towards a move lower. Should we see such a move, a conservative area of support to look for is around the 61.8% to 76.4% retracement zone of the ¥111.11-¥112.17 rally.
However, whether we start a phase of selling depends on the ¥111.75 level, and thus it makes sense to look out for whether we break and hold below that level to determine direction for the short term.
USD/JPY price chart