FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The euro has managed to rebound in the short term, while GBP/USD and AUD/USD may well be carving out higher lows.
EUR/USD recovers $1.13, but for how long?
EUR/USD finally managed a substantial rally yesterday, moving off $1.126 and heading towards $1.134, but at present it looks like a lower high has been created. Further downside targets $1.126, and then to $1.1118.
If bulls can hold the price above $1.126 and create a higher high, it is possible that a more bullish view will develop, but at present this seems unlikely.
Possible higher low for GBP/USD?
It may be that GBP/USD has found a bottom around $1.284.
The price has rallied off the lows and started to move higher, but it will need to maintain this momentum and push above $1.294 to suggest that a higher low is in place. This would then suggest a move back towards $1.32 is possible. A close below $1.2773 would negate the bullish view and bring the lows around $1.248 into play.
AUD/USD steadies around $0.71
It is possible that AUD/USD has begun to bottom out, as the price moves back above $0.71.
Further gains target $0.728, around the highs from the end of January. A fresh bearish view would require a move back below $0.705.