FX Levels to Watch – EUR/USD, GBP/USD, USD/JPY

Dollar strength has ebbed somewhat, helping the euro to move higher. Meanwhile, the yen is holding its ground against the greenback.

Yen
Source: Bloomberg

EUR/USD steadies for now

Euro bears continue to hold sway here, but after declines for EUR/USD over the past four sessions, they should be on alert for a rebound. Any rally back up to $1.1950 should be treated as a selling opportunity, either to initiate new shorts or add to existing positions.

The $1.17 area is acting as support for now, but below this the 50-day simple moving average (SMA) at $1.1645, comes into play. Overall, the outlook is bearish, and remains so unless we see a recovery above $1.20.

GBP/USD retracement continues

For GBP/USD, the next area of big support comes in at $1.3281, as the price continues its fall from the September highs. The daily uptrend remains intact, and will continue to do so unless the price pushes below $1.30.

Nonetheless, a move below $1.3268 would be a bearish development and raise the possibility of more losses. For now, intraday rallies will likely be sold, as bulls wait for a deeper pullback. 

USD/JPY edges up, but stuck in long-term downtrend

USD/JPY continues to push higher, although it remains far from ending the downtrend that has endured all year. That would require a close above ¥114.37.

For now, dips will continue to be bought, with a move back below ¥111.50 needed to negate the positive outlook for the pair in the short term.

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