FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Today’s vote in UK Parliament means GBP/USD may be volatile, while the euro is under pressure again.
EUR/USD back on a downward path
Having rallied to $1.155, the price of EUR/USD has weakened again, and so far this morning further downward pressure is developing.
The previous two sessions saw the pair find support around $1.145, but if this is lost then the lows from a week ago at $1.143 come into play. In the short term, we have seen lower highs since the peak last week, so any bullish recovery needs to see the price move back above $1.149.
GBP/USD faces high volatility
This evening’s vote will likely result in increased volatility for sterling crosses.
GBP/USD has pushed steadily higher over the past week, and any weakness today could be seen as a possible buying opportunity, with a dip towards $1.28 and rising trendline support from the lows at the beginning of the month offering an interesting risk-reward dynamic.
USD/JPY stuck in tight range
USD/JPY has moved sideways over the past few days, from around ¥108 to ¥109.
A break of this range is needed to provide definitive direction, but with the price having rallied overnight from the lows around ¥108, a possible short trade within the current range emerges. Alternatively, with the price having possibly bottomed out around ¥108, a break above ¥109 would confirm a more bullish view and allow traders to buy on dips as the trend develops.
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