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

Small rebounds for the euro and sterling may not last, while USD/JPY has seen its solid uptrend disturbed.

EUR/USD rallying from earlier lows

EUR/USD has rallied off Wednesday’s lows around $1.1680, with a first target being $1.1822 and the high from earlier in the week.

A move above this opens the way to $1.1915 and then $1.20. Below $1.1680, $1.1574 comes into view.

GBP/USD struggling to hold rally

Rallies for GBP/USD have been short-lived since the currency began breaking lower on a renewed basis last week. Over the past 12 hours, rallies towards $1.3380 have found sellers, so we need to see $1.34 reclaimed to suggest a broader move higher is underway.

However, the descending trendline from the 17 May high would suggest resistance comes into play around $1.3430. A turn lower from here would target $1.3320 in the first instance.

USD/JPY dips finding buyers

USD/JPY has lost the rising trendline that has held since late March, as risk assets around the globe take a knock.

Dips below ¥109.50 are finding buyers for now, if this holds then a new higher low is in place, with a first target at ¥110.40, and then onto ¥111.50.

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