The pressure on prices has somewhat decreased as
EURUSD
dropped below the 89-period moving average (PMA) on the 240-minute chart. However, the currency pair is still on an upward trend since early June, near the 200-PMA on the 4-hour chart. To further alleviate the upward pressure, EUR/USD needs to drop below the mid-July low of 1.0825. On the upside, immediate resistance is at Monday's high of 1.1150, followed by a stronger resistance level at this month's peak of 1.1275.
GBPUSD
: Flirting with the long-term hurdle
GBP/USD is approaching a similar resistance level on the WMA 200, which coincides with the upper edge of an upward channel since the beginning of 2023. This follows the activation of an inverse head and shoulders pattern - the left shoulder at its lowest level in July 2022, the head at its lowest level in September 2022, and the right shoulder at its lowest level in Q1-2023 - indicating a trend towards the highest level of 2021 at 1.4250 in the coming months.
USDJPY
: A false bullish candle?
The rising candlestick on the daily chart is boosting the recovery potential of the 'last storm' USD/JPY this month. This occurs around a strong resistance level at 142.00 (61.8% retracement level of early July's fall). Breaking below immediate support at 140.75 on Monday will increase the likelihood of a higher fake move last week.
EURUSD
dropped below the 89-period moving average (PMA) on the 240-minute chart. However, the currency pair is still on an upward trend since early June, near the 200-PMA on the 4-hour chart. To further alleviate the upward pressure, EUR/USD needs to drop below the mid-July low of 1.0825. On the upside, immediate resistance is at Monday's high of 1.1150, followed by a stronger resistance level at this month's peak of 1.1275.
GBPUSD
: Flirting with the long-term hurdle GBP/USD is approaching a similar resistance level on the WMA 200, which coincides with the upper edge of an upward channel since the beginning of 2023. This follows the activation of an inverse head and shoulders pattern - the left shoulder at its lowest level in July 2022, the head at its lowest level in September 2022, and the right shoulder at its lowest level in Q1-2023 - indicating a trend towards the highest level of 2021 at 1.4250 in the coming months.
USDJPY
: A false bullish candle? The rising candlestick on the daily chart is boosting the recovery potential of the 'last storm' USD/JPY this month. This occurs around a strong resistance level at 142.00 (61.8% retracement level of early July's fall). Breaking below immediate support at 140.75 on Monday will increase the likelihood of a higher fake move last week.
