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

GBP/USD has shot higher, but the move has stalled ahead of a Carney speech today. Meanwhile, EUR/USD is having trouble moving higher.

Dollar and pound
Source: Bloomberg

EUR/USD beginning to weaken

Rallies in EUR/USD have been sold since the European Central Bank (ECB) meeting, with an inability to push back above the $1.20 mark. The uptrend is not beaten yet, but a push below last week’s low of $1.1837 would signal further weakness from here.

Longer-term, we would need to see the price below $1.1780, the 50-day simple moving average (SMA), to put a real dent in the trend, so for now, caution is the watchword for bears.

EUR/USD chart

GBP/USD flies high for first time in months

Fresh hawkish commentary on Friday sent GBP/USD flying to fresh highs, touching $1.36 for the first time since the Brexit vote.

Today’s 4pm speech by Bank of England (BoE) governor, Mark Carney, could mean that today sees the pair consolidate after leaping higher last week. Pullbacks towards $1.33 could well find fresh buyers.

GBP/USD chart

USD/JPY pushes higher

An upper gap here has seen USD/JPY push above the 100-day SMA (¥111.10). Further gains would target ¥112.25, the 200-day SMA, and then on to the ¥114.37 area.

A close below ¥110 is the first step to putting a more bearish outlook in place for this pair. 

USD/JPY chart

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