The US Dollar started the week strong, but was unable to extend after the initial push. The EUR/USD, GBP/USD and USD/JPY pairs are in very short-term consolidations. Let’s take a look at their charts and be ready for the breakout.
The EUR/USD is trading between 1.3180 and 1.3215. A break below 1.3180 can continue a bearish trend that has downside risk at least toward the Sept. 2013 lows around 1.3105. A break above 1.3215 can introduce a near-term bullish correction, but we should expect sellers around 1.3140. The GBP/USD fell to 1.6535 and rebounded to 1.66 where it is holding below this key support/resistance pivot for the near-term. A break above 1.66 open sup a bullish swing, but we should expect sellers in the 1.6650-1.6660 area. A break above 1.6740 might be needed to put away the bearish bias, which is still in play now, with downside risk toward the March low of 1.6465. The USD/JPY already looks ready to continue a bullish trend after the 2-session consolidation.
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