FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD and GBP/USD have been gaining ground, with the pound outperforming ahead of today’s parliamentary vote. Meanwhile, USD/JPY is holding up for now, with a key support level being tested this morning.
EUR/USD pushing higher after key support holds up
EUR/USD managed to rebound from the $1.1301 support level on Thursday, with the pair driving higher since.
While the wider creation of higher lows has been negated, last week’s drop took us into the 76.4% retracement of the $1.1215-$1.157 rally. Thus, there are arguments on both the bullish and bearish sides in relation to whether we will see this rally break through $1.157 or not. Whether or not we respect the upcoming Fibonacci resistance is one sign of the market intent. Thus, while further upside looks likely over the short term, watch for whether the likes of the 61.8% ($1.1462) or 76.4% ($1.1503) hold up.
GBP/USD breaks through notable resistance level
GBP/USD managed to rally through the key $1.3175 resistance level on Friday, with the pair breaking out of a long-term downtrend ahead of today’s parliamentary vote.
Technically speaking, expect this uptrend to continue as long as we do not break below the $1.3012 level. Thus, further upside looks likely, with $1.3258 and $1.33 the next big resistance levels to watch.
USD/JPY finding support after trendline break
USD/JPY dropped below an ascending trendline support on Friday, with the threat of a breakdown hinging on whether we see a drop below the ¥109.09 swing low or not.
Thus far, we have not seen that happen, with the price testing and finding support on that key level. As such, watch for either a rebound from here, or a drop below ¥109.09 to signal an impending period of downside.