EUR/USD at Short-term Key Level
The EUR/USD failed to maintain the rally above the 200-day 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-day 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 it’s trading below that resistance.
Alternatively, I would look for a further downside on a break below the 1.1075 level. Probably towards the next key support area 1.0980-1.1000. Breaking 1.0980 will probably clear the way toward 1.0880.
Moving to the 8-hour time interval, the price has taken 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 were 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 by the reversal from 1.3382 horizontal resistance. The price has taken near-term support around 1.3050. This is a negative indication and suggests that more downside is likely. The next downside target is around 1.2770 areas. 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 breakout above that area may signal a big move to the upside with the 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-day simple moving average at 108.70.