EUR/USD moving lower in retracement mode
EUR/USD is continuing its descent, following a brief foray above $1.2538 last week.
The current move lower looks likely to continue in the short term, but unless we break below the $1.2205 mark, there is a strong chance we are seeing a retracement. As such, watch out for the Fibonacci levels as potential bullish entry areas.
EUR/USD price chart
GBP/USD retracement unlikely to last
GBP/USD is also moving lower, coming off the back of the rally up through $1.4067 last week.
That break points towards an impending resurgence for the pair, with the current move lower simply providing a more advantageous buying opportunity. As long as the price does not fall below $1.3800, a bullish outlook remains in play.
GBP/USD price chart
USD/JPY approaching bullish break
USD/JPY has begun trading within the upper half of the Bollinger band, with the 20-hour simple moving average (SMA) providing support rather than resistance.
This is the first time we have seen the pair exhibit this in almost two weeks, providing a potentially bullish short-term view. However, we still remain below the crucial ¥106.86 swing low, so we need a break above that level to confirm the bullish view. But, until that happens, there is still a good chance of the pair turning lower soon enough.
USD/JPY price chart