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

The euro has been bolstered by fresh PMI figures and a speech by Mario Draghi, while cable looks set for further losses. 

Dollars and euros
Source: Bloomberg

EUR/USD staying above $1.17

EUR/USD has fought hard to hold above $1.17 all week, and today has been no different. However, despite yesterday’s breakout above $1.18, the price still faltered below the $1.1850 high from 11 August. If the pair can break the descending trend on the four-hour chart, then this area from $1.1830 to $1.1850 is the key one to watch, as a break above here would target $1.19, the high from the beginning of August.

Bears are likely to remain frustrated unless we see a close below $1.1650, which would clear the support zone that has held for almost a month now.

GBP/USD facing more losses

GBP/USD continues to endure losses, with the $1.28 level now looking under threat. Yesterday the price held above the low from mid-July ($1.2811), but a close below here would open the way to $1.2775 and then $1.2706.

For bulls, the 50-day and 100-day simple moving averages (SMAs) at $1.2941 and $1.2879 respectively, now stand as resistance.

USD/JPY about to move higher?

Dips below ¥109 over the past week have found buyers on USD/JPY, so it looks like a move back towards ¥110 and higher could be on the cards.

Support has been strong in the ¥108.50 area, so it needs a close below here to really suggest the downside move is back on. 

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