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US Dollar Mixed; Firm Against the Yen, Weak Against the GBP, with EURUSD Rolling Back Lower

Technical Analysis

The US currency has displayed a mixed August tone within G3 (EUR, USD, JPY), whilst Cable (GBPUSD) remains solid. We see an upside bias for USDJPY and a bias for EURUSD to roll lower, but GBPUSD looks set to break to the upside.

EURUSD

  • A Wednesday and Friday stall ahead of the key 1.1216 barrier (as expected) for a roll back lower and a bear tone for Monday.
  • Furthermore, whilst below 1.1216, we see the broader, erratic down trend intact and see the risks as lower through mid-August.

Short/ Intermediate-term Outlook – Downside Risks:

  • Whilst below 1.1216 we see a more negative tone with the bearish threat back to 1.0807.
  • Below here targets 1.0658, 1.0520 and 1.0459.

Daily EURUSD Chart

EURUSD

GBPUSD

  • A solid rebound back higher to the range through last week, to set up a bullish bias into Monday.
  • Furthermore, the July push through resistances from June, the rally from our 1.5327 retrace support, and rebound from ahead of the trend line from May all leaves an upside risk into August.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a bullish rebound bias for 1.5681 and 1.5789.
  • Threat above is then to 1.5930, 1.6000 and 1.6182/88.

Daily GBPUSD Chart

GBPUSD

USDJPY

  • The firm rally last week to a new rebound high has reinforced the rally from late July to leave a bullish bias through mid-August.
  • Despite the setback late last week, the rebound from 123.76 ahead of the 123.48/30 support area leaves an upside bias for Monday.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a bullish threat to 125.85.
  • Above targets 129.08, 130.00 and 132.23.

Daily USDJPY Chart

USDJPY

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