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

A mixed bag for the dollar overnight, has seen EUR/USD push higher amid weakness for GBP/USD. Meanwhile, USD/JPY is moving back towards a crucial support level yet again.

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.
USD
Source: Bloomberg

EUR/USD pushes higher in retracement mode

EUR/USD has managed to move higher overnight, with the pair moving well past the short-term 76.4% retracement. Should the price rally up through the near-term swing high of $1.1616, then this would point towards a possible wider retracement of the $1.1691-$1.1554 sell-off.

Should that occur, then we would be looking at the $1.639-$1.1659 resistance zone (61.8%-76.4%) to come into play. As such, a bearish view remains unless the price breaks up through $1.1691.

GBP/USD turns lower, in threat to further upside

GBP/USD has been trading in a broadening formation over the past fortnight. Yet despite rallying from trendline support, we are seeing the pair move lower without having set a new higher high. This threatens to move the pair back towards the bottom end of the pattern once again, with an hourly close below $1.3109 providing a bearish short-term view.

Ultimately, we will need to see a break below $1.3030 to point towards a move out of this recent consolidation. However, for the short term, the ability to move back below $1.3109 would be very telling.

USD/JPY turning towards key support level

USD/JPY is selling off once again this morning, with the price having bounced from trendline support yesterday. Crucially, with the price having rallied into a major long-term resistance zone at ¥114.37-¥114.49, a break below the ¥113.53 level could bring about a strong move lower for the pair.

We would need a move back below ¥112.95 to truly negate this two-month uptrend, yet for the near term it is the ability or inability to break below ¥113.64 that will provide us with a directional bias.

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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.