FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The euro and sterling are finding it hard to hold their ground against the dollar, while USD/JPY is on the up once more.
EUR/USD in ongoing correction
The price of EUR/USD continues to push lower, falling below $1.13 support and heading to the November low at $1.1215. Further declines bring $1.1118 into view.
Since September, substantial rallies have met with trendline resistance, and any push back towards $1.143 could well meet the same fate. So far, no change has been seen in the relentless downward move, but a rally above $1.132 might provide hope of a near-term rebound.
GBP/USD still on the back foot
If GBP/USD has turned a corner longer term, it needs to start thinking about creating a higher low, preferably above $1.26.
For now, the downtrend from last April seems to have turned into a consolidation phase over the past few months, with rallies towards $1.32 followed by retracements towards $1.26. This looks to be playing out again, with $1.2773 and $1.2635 as the next targets on the downside. A recovery above $1.29 might suggest that a higher low is in place.
USD/JPY pushes higher again
The USD/JPY recovery goes on here, with the price moving back above the 50-day simple moving average (SMA) for the first time since mid-December. Further gains target ¥111.52.
Last week saw the price stabilise around ¥109.80, and then break higher. A pullback towards ¥110.00 might provide another buying opportunity.