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

While cable is managing to rise for now, the euro remains under pressure, while USD/JPY is bouncing back from yesterday’s low.

EUR/USD tiptoes higher after losses

EURUSD is picking itself up off the floor, having suffered heavy losses at the end of last week.

Having been such strong support, it is likely that the $1.15 area will be a major barrier to any upside progress. A move above $1.1628 is needed to suggest that a more bullish view could be developing, and even then trendline resistance from the May highs comes into play around $1.17. A fresh push lower will target $1.1350 in the first instance, and then from there $1.1296 comes into play.

GBP/USD finally manages to bounce

We may be seeing a near-term rebound in cable, although the overall picture is still bearish for GBPUSD.

A rally back towards the 50-day simple moving average (SMA) at $1.3154 would constitute another potential selling opportunity, while a close above $1.32 is needed to create a higher high. A close below the Friday low of $1.2718 would suggest a push towards $1.26 is underway.

USD/JPY rally revives

The sharp rebound for USDJPY here from the lows yesterday has carried over into Tuesday’s session.

Now, the bulls need to push above the descending trendline from the July highs up at ¥113.20. A failure to break this line might suggest a new move lower is underway, targeting ¥110.00. 

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