Consolidation phase takes hold for EUR/USD, GBP/USD and USD/JPY, but will support hold to send all three higher?
EUR/USD falls back into key support
EUR/USD has been on the back foot since Wednesday, with the pair dropping back into the $1.1882 support level after a failed attempt to push up through $1.1992 resistance.
A move below this $1.1835-$1.1882 support zone would bring a continuation of the downtrend seen of late. However, it makes sense to await that break below support to expect further downside given the potential for a short-term rebound from this level.
GBP/USD turning higher from confluence of support
GBP/USD weakness has taken us into a combination of horizontal and trendline support this morning.
With the pair starting to regain ground, there is a strong chance we see short-term strength to continue the recent consolidation phase. As such, gains look likely from here, with a break back below the $1.3809 level required to bring about another pullback for the pair.
USD/JPY drifts back into Fibonacci support
USD/JPY has been on the back foot over the course of the past week, with initial Monday gains giving way to a gradual fade lower. That has ultimately taken us into the 76.4% Fibonacci level, at ¥108.58.
A break back below the ¥108.33 level would be required to negate the wider uptrend, pointing towards a more protracted pullback. However, until that happens we are looking at a potential moment where the bulls could come back into play for USD/JPY.
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