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

There is dollar weakens across the board, with EUR/USD, GBP/USD and USD/JPY all seeing sharp devaluations of the greenback. Remember: the trend is your friend.

EUR/USD forex pair
Source: Bloomberg

EUR/USD breaks to new eight-month high
EUR/USD is breaking higher once more, following on from Friday’s push through the crucial October 2015 high of $1.1495. This trend is showing little sign of letting up and thus longs are preferred on any pullback.

The next major resistance level is an inside trendline (currently $1.1611), originating from the March 2015 low. Meanwhile, near-term support is located at $1.1522 and $1.1495.

GBP/USD rally continues its bullish trend
GBP/USD continues to gain, as the pair resumes the strong uptrend in place over the past month. With recent upside having broken through a number of importance resistance points, there are few key levels to watch out for. As such, any notable retracements are likely to be bought.

Near-term, that means any move down to the 61.8% ($1.4691) or 76.4% ($1.4679) would be ideal for new longs. Whether that pullback occurs or not remains to be seen.

However, the bullish view remains unless we see a break through the near-term support at $1.4660.

USD/JPY continues to tumble
Dollar weakness completed a hat-trick, with USD/JPY continuing to fall sharply since last week’s BoJ inaction. In a similar manner to EUR/USD and GBP/USD, any pullback will be seen as an opportunity to get into the trend.

Key near-term resistance levels are at 106.13 and 106.82, with support at 105.22 (200-week simple moving average).

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