EUR/USD heading back into key resistance zone
Following a strong move lower last week, EUR/USD has managed to regain some composure.
That break below $1.2205 completed a wider double top formation, with further downside looking likely. However, with the price approaching the $1.2455 swing high, there is a chance we could see a 61.8-76.4% retracement ($1.2402-$1.2461). With trendline support and the $1.2455 level, the ability to break and hold above that resistance zone will be key to determining whether we will see further upside over the near term or not.
GBP/USD regaining ground after sell-off
GBP/USD fell below the key $1.3764 swing low last week, bringing a wider bearish view.
While this points towards further downside, there is a good chance we are seeing a retracement before the pair moves lower again. Keep an eye out for a break below the latest intraday swing low as a bearish signal, with $1.3756 the current level to watch. Until that is broken, further short-term gains seem likely.
USD/JPY consolidating after support break
USD/JPY broke below ¥105.53 support on Friday, with the price hitting a 15-month low.
This points towards further downside, yet with the price consolidating, it makes sense to await an hourly close below ¥105.24 to signal further downside. Alternately, an hourly close above ¥105.75 would point towards a more protracted retracement to the upside.