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

The dollar is coming under pressure, with EUR/USD, GBP/USD and USD/JPY all turning against the greenback. However, with the wider trend still in play, are we going to start seeing a dollar comeback?

EUR/USD launching assault on key resistance zone

EUR/USD is turning higher yet again this morning, with the pair looking likely to challenge the $1.1718-$1.1746 resistance zone once more.

The ability to break through that resistance zone is key in determining whether we are set for a wider period of gains. As such, watch for whether we see yet another reversal at this area of resistance, or else a breakout to impact the wider picture for the pair.

GBP/USD turning higher after yesterday’s volatility

GBP/USD is also gaining ground in early trade, with the pair attempting to push higher after falling below trendline support. That break could provide the first signal of an impending downturn.

However, with the price not having broken below the $1.3056 swing low, we have not yet seen a full bearish signal to point towards a break lower. Nevertheless, there is a chance we will see this rally fall short of the $1.3212 swing high, which could build on this recent trendline break. As such, the ability or inability to break through the $1.3212 level is going to be key in determining where we go from here.

USD/JPY pulls back into trendline support

USD/JPY has dropped into trendline support overnight, with the recent channel looking to come back into play.

Looking at the stochastic oscillator, we can also see an area of trendline support coming into view too. With that in mind, there is a good chance we will see the pair start to turn higher, with a break below ¥111.65 required to break out of this uptrend.

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