FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Euro watchers will be pleased to see EUR/USD hold the 50-day SMA, but sterling remains unable to break $1.29.
EUR/USD holds 50-day SMA
For the past three days, EUR/USD has found support at the 50-day simple moving average (SMA) of $1.1384, with dips below this moving average finding buyers.
If this holding action continues, then a bounce back towards $1.1471, the 100-day SMA, would be one to watch. A loss of this zone would bring $1.13 back into play.
GBP/USD held below $1.29
GBP/USD has been stuck fast at $1.29 for several days. A failure to break higher raises the risk of a deeper retracement.
Near-term support lies at $1.2773 (close to the 50-day SMA at $1.2763 too), while a bigger dip finds support around $1.27. Above $1.29, the price targets $1.3039.
USD/JPY pulls back from overnight high
Since yesterday's high, the USD/JPY price has pulled back, but the uptrend from the lows of last Thursday remains intact. Even a dip to ¥108.50 would still be a possible buying opportunity, and for now the price is holding above ¥108.70.
A fresh move higher, reinforced by the bullish crossover in the daily moving average convergence divergence (MACD) indicator, would target ¥109.20 and then higher.
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