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

Today’s US CPI readings will be key for FX traders, as the dollar continues to remain weak.

Source: Bloomberg

EUR/USD heads lower

Upside momentum continues to fade here for EUR/USD, as the price pushes below yesterday’s low. A further decline will bring the $1.1662 level into play. A rally requires a move above $1.19, which would then bring $1.20 and $1.21 into view.

We will likely have to wait until US consumer price index (CPI) and retail sales data this afternoon for further clues as to whether the new week will begin with a bullish or bearish view. 

GBP/USD creates new higher high

Despite a gloomy Brexit press conference yesterday, the pound continues to rally, and has crucially pushed GBP/USD back above the high from last week at $1.3292.

From here the $1.34 area comes into view. A close back below $1.3268 is needed to negate this bullish outlook.

USD/JPY maintains downward momentum

USD/JPY is edging below the lows from earlier in the week at ¥111.97, with it looking like further losses in the direction of ¥111.68 and lower are likely. Below this and ¥110.11 comes into play.

Intraday rallies are likely to keep being sold, with the bearish dimension remaining unless the price moves above ¥113.00.

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