EUR/USD rallies into crucial resistance zone
EUR/USD has rallied through the $1.1746 resistance level, with the pair shifting into the next major level at $1.1790.
The ability to break through this level is going to be key in determining where we go from here. With the pair relatively overextended, there is a good chance we could retrace lower from this resistance level. However, as long as we do not see a break below $1.1650, any such weakness would be seen as a buying opportunity.
GBP/USD reverses lower after break through key resistance
GBP/USD managed to rally through the $1.3212 level yesterday, with the sellers coming in overnight to bring us back to that same level.
The uptrend seen through recent weeks points towards a strong possibility of further upside to come, with a break below $1.3097 required to negate this recent uptrend. Until then, any further downside is likely to be bought into.
USD/JPY looking set to retrace once more
USD/JPY managed to rally from trendline support perfectly yesterday, with the pair pushing through the top end of the Bollinger band. However, with the price shifting back below the upper band, we can draw similarities with the previous occasions that we broke higher within this channel.
The past two rallies through Bollinger band resistance brought about another retracement into the channel bottom, with the sell signal coming from a drop back into the Bollinger, as is currently happening. We are also seeing the stochastic reach trendline resistance, bringing a potential shift in momentum. As such, we look likely to turn lower over the short term, yet unless we break below ¥112.04 short-term losses look like another buying opportunity.