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Dollar domination: EUR, GBP and JPY struggle

After a sleepy start to the week, the  USD  resumes its strength. GBP/USD suffered a sudden drop to 1.2120. USD/JPY is trading at 104.85, at the high end of recent ranges and just ahead of the round 105 level.

The dominant theme of October has been the ongoing strength of the US dollar. The  greenback gained ground against many currencies, especially against the majors. Occasionally, it has taken breaks, but these were followed by further waves of USD buying.

Update:  US CB Consumer Confidence misses at 98.6 – USD rally stalls

Here is EUR/USD. The pair is  on the ropes once again, clinging onto the recent lows of 1.0860 which is a seven-month low. Further support appears at 1.0820 and 1.0710. Draghi’s dovish words dragged it down to these levels last week. Will it fall further to the downside?

eurusd-october-25-2016-falling-to-support

Here is GBP/USD. After the great flash crash, the pair never dropped again under 1.20, but it also failed to recapture the previous levels of 1.26. The round level of 1.20 serves as a line of support. Resistance is at the previous low of 1.2170.

gbpusd-crashing-october-25-2016

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.