FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Recent trends look set to continue, with GBP/USD, EUR/USD and USD/JPY rising in countertrend moves.

Pound and dollar
Source: Bloomberg

EUR/USD seeks to extend wider retracement

EUR/USD continues to climb in what looks like a potential deeper retracement beyond the 50% mark briefly surpassed last week. Ultimately, whether we surpass last week’s high of $1.1188 will dictate whether we expect a move into the 76.4% retracement area or not.

We are trading within a rising wedge which provides us with a potential bearish breakdown scenario, yet for now we have seen little to show us this short-term rally is going to come to an end. However, an hourly close below $1.1105 is required to negate this current rally. 

GBP/USD set to bounce once more?

IN_GBPUSD has seen a decent bounce after the Bank of England decided to keep rates on hold. Ultimately this whole rally is a short-term phenomenon and, as such, further losses are likely. However, for now we seem likely to push higher again today, with trendline, horizontal and Fibonacci support likely to provide enough to spark another move higher.

This bullish view remains unless we see an hourly close below $1.3278. Given the flatlining tops and increasing bottoms, it is clear we could be trading within an ascending triangle for now.

USD/JPY seeks to break higher once more

IN_USDJPY has been seeing a relatively consistent uptrend this week and this is showing few signs of letting up, with price rallying once more from between the 61.8% and 76.4% retracement.

Essentially we are looking for another leg higher unless we see an hourly close below ¥105.05 support.

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