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

Dollar strength is once more the main driver of FX markets, with EUR/USD and AUD/USD selling-off as USD/JPY continues its ascent.

Euro and US dollar notes
Source: Bloomberg

EUR/USD continues incredible sell-off

EUR/USD is once more breaking lower, following a sharp move overnight. The current sideways price action is expected to result in another move lower.

However, as long as we do not see an hourly close back above $1.0745 a bearish view remains. The next notable support level in view is $1.0525.

USD/JPY charges higher once more

IN_USDJPY has spiked higher overnight, in a continuation of the recent bullish trend. It is worth noting that on the whole, the four-hour chart has been relatively good for picking out the key swing highs and lows.

Given the recent trend, we expect to see further gains, with a break below the ¥108.55 required to negate this uptrend. To the upside, the ¥111.44 level (May 2016 high) represents a major level of resistance to watch out for.

AUD/USD continues to trend lower

AUD/USD has continued to extend its losses following a break lower from a symmetrical triangle pattern last week. This has formed a very consistent downtrend. As such, further losses seem likely.

However, it makes more sense to sell into rallies, given the threat of a rebound considering the shallow nature of current losses. A bearish outlook is in place unless we see a break through $0.7502.

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