FX levels to watch: EUR/USD, GBP/USD, USD/JPY
The dollar is back, as the currency shrugs off the recent Fed-inspired weakness.
EUR/USD in retreat once more
EUR/USD failed to break $1.15 last week, and further declines have been seen since then. The pair now targets $1.13 in the event of a wider decline, and below this the $1.12 level comes into view.
While oversold in the short term, the price needs to rally above $1.146 to break the downtrend from last week’s high.
GBP/USD at key support
Bulls will need to watch this GBP/USD battle around $1.302 carefully.
If they can hold this zone of support, then an attempt to challenge $1.31 is possible, with a break of this lower high signaling a fresh bullish move in the ongoing uptrend from the December lows. A failure to hold $1.30 points towards a deeper fall, potentially towards $1.28 and then $1.262.
Uptrend back for USD/JPY
The dollar is back in the ascendancy, moving USD/JPY back to the ¥110.00 levels that marked the peak in mid-January.
Yesterday saw the price attempt to clear this level and fail, but the overnight pullback has now run its course it seems, with buyers entering from ¥109.80. A push above ¥110.00, targets ¥111.23, the 200-day simple moving average (SMA).