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

The dollar comes under further pressure in both USD/JPY and GBP/USD pairs. Conversely, EUR/USD is moving gradually lower from a triangle pattern.

EUR/USD notes
Source: Bloomberg

EUR/USD breaking lower from triangle pattern

EUR/USD has broken through trendline support this morning, following a failure to create a new high overnight. This could be a bearish short-term sign if it is followed up by an hourly close below $1.1234.

As such, watch out for a bearish short-term signal with an hourly close below $1.1234, while an hourly close above $1.1285 would provide a bullish continuation signal. 

EUR/USD chart

GBP/USD pushes towards Fib resistance

GBP/USD has continued its ascent, with the price moving into the 76.4% resistance around $1.2957. Given the wider downtrend in play, there is a good potential for this Fibonacci level to mark the end of this recent retracement.

Of course, we have the election later this week so it will be a volatile time, but given the wider downtrend we would need a break through $1.3015 to undermine it and point towards further gains.

GBP/USD chart

USD/JPY tumbles once more

USD/JPY moved sharply lower overnight as the risk aversion ahead of Thursday’s upcoming events pushes money into the yen.

Given how extended things are to the downside, it makes sense to wait for the formation of a continuation pattern or retracement. However, further downside does look likely before long.

USD/JPY chart

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