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

The dollar has started showing some signs of a resurgence, while EUR/GBP looks likely to turn lower, following a rally into the top of a channel.

Source: Bloomberg

EUR/USD retraces towards crucial support level

EUR/USD has sold off sharply overnight, with the price moving towards the crucial $1.2195 support level.

An hourly close below that support level would provide a bearish shift for the pair, looking likely to begin retracing the wider $1.1915-$1.2323 move. Until the price falls below $1.2195, then the bullish short-term trend remains in play. 

EUR/GBP shows potential for bearish shift

EUR/GBP is consolidating within a symmetrical triangle formation, following a rally into the top end of a three-month descending channel.

This points towards the potential for another bearish shift for the pair, where an hourly close below £0.8855 would signal a likely beginning of a more bearish phase. 

USD/JPY rallies against downtrend

USD/JPY has pushed higher overnight, with the pair moving against the clear downtrend seen throughout 2018 thus far.

The ability to break through ¥110.98 will be key in determining whether this trend is about to reverse. Until then, there is a strong chance we could start to see the sellers come back into play, with the 76.4% retracement pointing towards a strong risk-to-reward profile associated with shorts. 

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