EUR/USD rally starts to ebb
The pair has recovered somewhat from the beating it received after last week’s European Central Bank (ECB) meeting, but EUR/USD remains well below last week’s highs.
Having bounced overnight from below $1.23, upward momentum appears to be fading, raising the prospect of a fresh move lower. The 50-day simple moving average (SMA) at $1.2280 is the first area of possible support, and then below the $1.2165. A longer-term rally needs to clear $1.2450.
GBP/USD maintains downward bias
Cable has trended lower since the end of January, and last week saw another bout of selling develop for GBP/USD around $1.39.
If momentum falters around this level again, we look to the $1.37 as the next major area of possible support. It would require a daily close above $1.39 to break the procession of lower highs.
USD/JPY turns lower again
The dollar enjoyed a good week, rallying from the lows near ¥105, but there is a risk for USD/JPY that the 2018 downward trend is reasserting itself.
The pair has faltered around ¥107, and if a new lower high is created here, a move back to ¥105 and lower could be in the offing. A close above ¥107 would then signal that a possible challenge of the ¥108 high could be on its way.