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

US dollar weakness continues to dominate affairs, as EUR/USD and GBP/USD rally while USD/JPY turns lower once more.

Euro
Source: Bloomberg

EUR/USD finds SMA support

Yesterday’s early EUR/USD weakness failed to last, with the pair falling down to the 200-hour simple moving average before breaking higher once more. This provides a more bullish picture for the pair given that we are seemingly moving away from a period of consolidation and towards the uptrend that characterized the end of March.

However, we are yet to see this pair really trend once more and thus choppiness is likely to remain until we break free from this zone. Therefore the $1.1438-$1.1454 range will be pivotal as a potential area of resistance today. 

EURUSD

Will GBP/USD find another leg higher?

Yesterday’s IN_GBPUSD rally was outstanding and will have caught many off-guard given the previous break through the $1.4057 support level. Overnight we saw the pair create a lovely gradual rounded bottom pattern, sending the pair higher once more.

However, the pair has seemingly failed to create a new higher high which will be crucial to sentiment today. As such, another leg higher would be expected should we see an hourly close above $1.4287. However, a failure to do so would point towards a possible deeper move lower, with $1.4227 and $1.4170 the next support levels.

GBPUSD

USD/JPY falling after overnight gains

IN_USDJPY is weakening once more this morning, following on from a brief respite overnight. The key levels to watch out for here are ¥108.44 and ¥107.63.

A closed hourly candle above ¥108.44 would point towards further gains, with ¥109.10 the next key resistance level. Conversely, a closed hourly candle below ¥107.63 would likely spark another leg lower for the pair with ¥107.00 the subsequent support level to watch.

USDJPY

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