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

The euro remains under pressure, but USD/JPY is flying after breaching key downtrend line.

EUR/USD notes
Source: Bloomberg

EUR/USD support holds at $1.096 for now

EUR/USD fell sharply yesterday, dropping back from the $1.10 line which was a combination of horizontal and trendline resistance.

Support for now is holding at $1.0906, but a break below here would open the way to $1.0830 and lower. Those on a longer term view would wait for a drop towards $1.07 to hit the rising trendline from the December lows.


USD/JPY pushes higher

USD/JPY bulls have seized control here, sending the price flying through the downtrend line and above the 100-day simple moving average (SMA) at ¥113.13 for the first time since mid-March.

The next target on the daily chart looks to be ¥115.50, the high from early March. A move above here would create a new higher high. With the price being overbought intraday, it may be wise to wait for a retracement that tests the previous downtrend line, given that the price is now some 70 points higher. 

AUD/USD losing ground

The commodity crunch has made itself felt in AUD/USD, which has been steadily losing ground since mid-March.

A drop through support at $0.7364 means that we are looking at a test of $0.7310 if the downtrend continues. Short term, a bounce back above $0.74 and then $0.7420 would be needed to suggest that a turnaround is in the offing.

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