The market has been pumping up the USD. As we get into the 8/27 US session however, we are seeing some paring of these gains, but will the greenback stay resilient or give way to consolidation/correction? Let’s take a look at the EUR/USD, GBP/USD, and USD/JPY.
EUR/USD broke below a mini consolidation range, and pulled back by the US session. If price can stay below 1.32, the bearish outlook should remain, which has the next target at 1.3105, the September 2013 low. The GBP/USD is completing a double bottom as it breaks above 1.66. This can open up a rally toward 1.6660. The 1.6660-80 area is indeed resistance so expect some sellers there. Unless price breaks above 1.6680, there is downside risk toward the 1.6464 low from March. USD/JPY is retreating, breaking below some key support factors in the near-term. It is still bullish so expect buyers to scoops it up on a dip, especially if USD/JPY manages to slide back toward the 103.10-103.20 area.
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