EUR/USD pullback within reach of key support level
The EUR/USD pullback has dropped beyond the 76.4% retracement, bringing about a heightened risk of a bearish breakdown.
We would need an hourly close below $1.2239 to signal a more bearish picture for the pair and, until then, there is still a good (but lessened) chance the pair will turn higher from here. An hourly close above $1.2345 would provide a more reliable signal that we are set to shift into a more bullish phase.
EUR/USD price chart
GBP/USD rise could be short-lived
GBP/USD is gradually trying to regain ground after the selling seen earlier in the week. The break below $1.4070 paves the way for further downside, and the fact that we have seen such minimal upside means we are likely to see another leg lower soon enough.
A bearish signal would come with an hourly close below $1.4005. Conversely, we would need an hourly close above $1.4244 to bring a more bullish outlook.
GBP/USD price chart
USD/JPY turning lower from resistance zone
USD/JPY is selling off sharply this morning, following a rally into a zone of descending trendlines.
With the pair having provided a handful of lower highs over the past two months, there is a good chance we will see another leg lower from here. With that in mind, a bearish outlook is in play unless we see the price break above ¥107.01.
USD/JPY price chart