EUR/USD at Short-term Key Level
The EUR/USD failed to maintain the rally above the 200-days simple moving average. As the price reversed lower forming a bearish shooting star reversal candlestick pattern at 1.1180 horizontal resistance area.
Following the bearish candle, the price extended the decline to the 50-days simple moving average and is testing a key horizontal support level. If you look left, you would notice the price swings around that key 1.1075 level.
We could see a short term upside bounce, however we are still trading in a sideways range as long as below 1.1180. Therefore, I wouldn’t consider buying this pair as long as its trading below that resistance.
Alternatively, I would look for a further downside on a break below 1.1075 level. Probably towards the next key support area 1.0980-1.1000. Breaking 1.0980 will probably clear the way towards 1.0880.
Moving to the 8-hour time interval, the price has taken the short term support(shaded in blue). A pullback and retest of that broken support-possible resistance now, is worth watching. As if the bearish scenario to unfold, it is the first area to look for the price to halt.
GBP/USD Breaks Back Below 1.30
The British pound has been under strong pressure followed the reversal from 1.3382 horizontal resistance. The price has taken the near term support around 1.3050. This is a negative indication and suggests that more downside likely. Next downside target is around 1.2770 area. Just above the 200-day simple moving average and the rising trend line.
USDJPY Faces Falling Trend Line
USDJPY had been trending slowly higher, as the price completed an inverse head and shoulders price action pattern. However, the price has reached a key long term juncture, where a long term falling trend line meets an important horizontal resistance at 109.70. Only a break above that area may signal a big move to the upside with a first target at 110.70.
For now, I would expect the current upside move to halt, and we could see a short term bearish move towards 109.10 and possibly the 200 days simple moving average at 108.70.