The USD continued to run during the early part of the 9/30 session. However, as we got into the 9/30 US session, the greenback is giving back some of those overnight gains. Let’s take a look at the USD/JPY, EUR/USD and GBP/USD charts.
USD/JPY is coming off a new high on the month at 109.85. The market is still bullish, and it is likely that traders will look at this dip as an opportunity to buy dollar-yen towards at least the 110.00 handle. EUR/USD fell to a new low on the year at 1.2571. There is a pullback, but we should expect sellers. There is still further room below 1.2571 to 1.2459, which is the 78.6% retracement of the 2012-2014 rally. With the weekly RSI in extreme oversold condition, we can anticipate some support here, unless the ECB does implement more QE this Thursday. GBP/USD made a new low on the week and is pulling back. However, unless it breaks above 1.63, the bearish outlook as the 1.6051 low in sight.
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