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

After a day of incredible volatility, we are seeing FX markets calm down somewhat, sparking a resurgence in the dollar for many pairs.

Japanese yen and US dollar notes
Source: Bloomberg

EUR/USD rollercoaster leaves bearish view intact

EUR/USD managed to gain and subsequently lose 300 points yesterday, in what was an incredible day of volatility for the pair. Crucially, despite the rally topping a key $1.1279 resistance level, the $1.1366 level is arguably more important as a swing high and it held.

On the shorter term picture, price broke back to a new low overnight and is continuing the downtrend in place over the week. The next key support level comes in at $1.0851, which is likely to be reached should we see an hourly close below the overnight low of $1.0907.

Until then, there is the possibility of a deeper retracement higher.

EUR/USD price chart

USD/JPY manages to end up above key ¥104.32 level

USD/JPY similarly saw substantial swings in trade yesterday, with initial selling giving way to an incredible rally back above ¥104.32. We have seen the pair top off at trendline resistance, yet it is turning higher once more.

Given the potential for a bullish reversal for USD/JPY over recent weeks, the ability to break through ¥105.95 and trendline resistance would likely signify a bullish period for the pair coming to fruition.

USD/JPY price chart

AUD/USD soars following choppy trade

AUD/USD saw an incredible day of volatility yesterday, with price returning to trendline support, only to break higher once more. This rally moved back above $0.7699 to provide a renewed bullish outlook.

The pair has shown signs of wanting to break higher from this multi-month triangle pattern and there is a chance this could be in the offing. A bullish outlook remains in place unless we see a move back below $0.7620.

AUD/USD price chart

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