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

Another dip for EUR/USD is being met with fresh buying, while USD/JPY has recovered a key resistance level, and looks set to move higher.

Euro notes
Source: Bloomberg

EUR/USD - bearish outlook in short term?

A swift reversal in EUR/USD have caused some worries for euro bulls, but the rally may not be entirely done yet.

Short term, we can expect some bearish developments if the price falls below $1.11 on the hourly chart, but longer term, as long as the price holds $1.10, the buyers are firmly in charge. A recovery will target $1.13 and then $1.1366.

EUR/USD chart

USD/JPY moves higher

The recovery in USD/JPY bodes well for risk assets as a whole, with the break back above key resistance at ¥111.68 a good first step in any recovery. A rally from here would head towards ¥112.50, where it may encounter resistance as it reaches the downtrend line off the 10 May high.

A move above the 100-day simple moving average (SMA) at ¥112.60 would then target the May high at ¥114.37. Bears need to see a daily close back below ¥111.68 to restore the negative outlook. 

USD/JPY chart

AUD/USD uptrend remains if the price holds above $0.74

A dip overnight prompted by news of a China's downgrade by Moody's was met by fresh buying, so we could see a move back to $0.7510 and higher in AUD/USD.

The 200-day SMA at $0.7536 still needs to be broken, but aslong as the price holds above $0.74, the upside picture remains intact. 

AUD/USD chart

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