The dollar resurgence looks to continue, with USD/JPY strength and GBP/USD strength both looking likely to re-emerge. EUR/USD attempting to break higher once moreEUR/USD is rallying once more, set within a downtrend which has lasted all of two days. Crucially, since we broke through the $1.1162 resistance level, the wider perspective points towards further upside for the short-term, yet a wider bearish outlook.
As such, while we are looking for another leg higher soon, we have not seen a sign to show that this move is happening quite yet. With that in mind, a bullish outlook comes back into play with either a break above $1.1182 or upon retracing down to the $1.1099 level.
Ultimately, we would need to see price break below $1.1071 to negate this bullish view.
GBP/USD downtrend continues apaceYesterday saw yet another break lower for GBP/USD, with price consolidating since. Essentially, we are looking for two triggers for potential shorts. Firstly, a rally into the 76.4% retracement at $1.3006 would look like a good area to get short for a move back towards the downside.
Alternately, an hourly close below $1.2936 should signal another leg lower. Essentially, we will need to see an hourly close above $1.3028 to negate this bearish short-term view.
USD/JPY rally looks set to continueUSD/JPY is currently consolidating following another leg higher yesterday. The pair has rallied from the 76.4% and trendline support earlier in the week. This short-term rally looks likely to continue and as long as price does not break below ¥101.76, we are looking for another move back through yesterdays high of¥102.20.
Look out for the ¥101.87 level as a potential reversal point to the current weakness, with this level providing an interesting area for longs.
