The violation of the 1.0617 resistance failed to yield an upward impulse, which means that this can still turn out to be a fake breakout. The EUR/USD is currently testing the dynamic resistance line connecting the highs from 23 July onward. We will wait to see how the price action will unfold in this area before taking any action.
A successful break through the downward trendline will signal a mid-term reversal, and in this case, the forex pair will head toward the 1.0737 static resistance. Conversely, repeated failures to push higher from current levels would signal the resumption of the long-term downtrend for the EUR/USD. This would create the necessary impulse for a sell-off toward the 1.0482 support en route to the 1.0448 local low.
The GBP/USD bulls turned out to be more resilient than expected, successfully pushing the pair through the 1.2271 technical level. All eyes now are at the dynamic resistance line, connecting the highs from 13 July onward. Whatever happens there would determine the direction of the next impulse.
A failure at this area, currently located at 1.2380, would lead to the resumption of the downtrend for the forex pair. Conversely, a potential violation of the trendline would result in a rally initially targeting 1.2548.
The USD/JPY is still struggling below the 150.16 resistance. At this stage, we favor a move lower toward 147.27, en route to the 144.44 support. For this bearish scenario to remain valid, the forex pair needs to keep trading below the major 151.94 resistance.
Disclaimer: The above analysis is based on technical indicators and historical price action. It does not constitute financial advice. Always conduct your research before making any investment decisions.
