EUR/USD sheds some ground and GBP/USD heads sharply lower, while USD/JPY recovers from its lows
EUR/USD bounce eases off
After surging to $1.10 yesterday, EUR/USD price has eased off, though the bounce remains intact.
If the price can hold above $1.09, then a new test of the $1.10 highs may develop. However, as calls for an emergency Federal Reserve (Fed) interest rate cut diminish we may see a strengthening of the US dollar, leading to more of last Friday’s gains being unwound.
GBP/USD lower again
Yesterday’s bullish reversal has faded, and EUR/USD price finds itself heading back towards $1.27.
Last week saw the price hold above $1.27, so a close below this opens the way to the lows of June at $1.2614. Buyers will want to see the price hold above $1.27 and then reverse course once more to help bolster the view that a higher low has been created.
USD/JPY rallies off its lows
While the USD/JPY pair rebounded off its lows, in a similar fashion to what we saw in equity markets, it has only seen small gains so far this morning.
A low may yet have formed, and bulls would need to see a move back above ¥146.00 to help reinforce this view. However, we may have seen a long-term trend change here, which might mean even a bounce to ¥150.00 would only create a lower high.
Renewed declines bring the lows of Monday at ¥141.78 back into play.