The US dollar remained on the strong back foot on Wednesday. Sellers pressured the 1.1550 level in the morning and were struggling with the handle the whole European session. The overall picture remained the same, sellers still lead the way and a sign that bulls are still nowhere to be found. The technical indicators are still giving us a sell signal and are pointing to a further downside. The resistance resides at 1.1660, the support comes in at 1.1550.
We assume that the EUR/USD pair will extend its losses and will visit the 1.1450 area soon.
Selling pressure around the British pound remained unabated on Wednesday. Sellers broke 1.3200 yesterday, but failed to leave this area and are slowly pushing the spot downwards. The major is trading at the lower end of the descending channel right now. The sterling is still below the main moving averages which are all pointing lower. MACD is declining in the negative area. RSI is still in an oversold area. The resistance resides at 1.3200, the support comes in at 1.3100.
The pair now seems to have entered a bearish consolidation phase and is unlikely to move lower today. We do not rule out a jerk to the 1.3100, however, sellers need to try hard to reach this level.
The USD/JPY pair is still in the upward channel. A bout of fresh selling pressure at the beginning of the week sent the rate to the lower end of the range. The US dollar dropped to 109.50 where the major found fresh bids and recovered to the 110.00 area afterwards. The moving averages continued their growth. MACD is in the negative territory. RSI bounced from the overbought area and is heading lower. The resistance resides at 110.60, the support comes in at 110.00.
The US dollar is unlikely to reach the 109.50 level. The 50, 100 and 200 EMAs are protecting the this area and will most likely reject the spot upwards.
Bears still have the ball. The pound accelerated to the downside and slipped to new multi month lows on Tuesday. Sellers led the major to the mark 144.30 where the selling pressure partly eased and the spot pulled back to the 145.00 hurdle. MACD stuck in the red. The moving averages continued their bearish slope. RSI is in an oversold territory. The resistance stands at 145.00, the support is at 144.00.
We are seeing more weakness in the British pound and due to the lack of buying interest. It looks as if it is going to fall further in the coming days. If so, the pound may decline to 144.00 later this week.
A bearish tone prevailed on Wednesday. The EUR/JPY pair was hanging around between 127.50 and 127.00 level. Early on the week sellers drove the spot to the 126.50 handle where it ran through fresh bids and rebounded to the already mentioned 127.50 level. The technical indicators are on the sellers’ side. MACD is going down in the negative area. RSI is staying around the oversold area. The moving averages are still moving south. The resistance stands at 127.50, the support is at 127.00.
It is likely that bears still manage to push the rate lower to 127.00 today. In this potential scenario sellers might lead the spot towards the 126.50 support area afterwards.
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