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FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The dollar appears to be under pressure this morning, as EUR/USD and GBP/USD attempt to gain ground, while USD/JPY tumbles sharply.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
GBP/USD forex pair
Source: Bloomberg

EUR/USD continues to grind higher
EUR/USD is breaking through the key resistance at $1.1230 this morning, which provides a bullish short-term signal. This is no doubt a countertrend move, yet the retracement higher seems likely to persist for the short-term.

Key resistance levels are found at the 61.8% ($1.1250) and 76.4% ($1.1266) Fibonacci retracements. Shorts are preferred around those levels for a continuation of the downtrend over the past three weeks.

Key near-term support levels are found at $1.1218 and $1.1180.

GBP/USD turning higher once more
GBP/USD seems to be in the process of turning higher once more this morning, following a sharp pullback in the second half of last week. The medium-term outlook is bullish and thus a return to this view was expected before long.

With the push above the $1.4523 resistance, there is are tentative signs of a bottom here, where a surge higher seems likely unless price breaks back below $1.4485. Even if this is the case, the medium-term bullish view holds unless we see a move below $1.4403.

Key resistance levels are $1.4534, $1.4550 and $1.4564, with support at $1.4506, $1.4485 and $1.4465.

USD/JPY sells off from trendline resistance
USD/JPY has sold off sharply from the key resistance level we have been watching last week. The break below ¥109.46 in particular is a sign that we could be seeing either a strong retracement lower, or a top in play here. As such, we have a clear bearish view.

However, it is worthwhile being somewhat wary of jumping into such an extended move lower. Thus, rallies are likely to be sold into, with ¥109.70 resistance and Fibonacci pullbacks of particular interest. We would need to see an hourly close back above ¥110.66 to negate this bearish view.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.