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

FX markets await the speech from President Trump this evening, but hawkish Fed comments last night are providing a lift to the US dollar. 

GBP/EUR
Source: Bloomberg

EUR/GBP pushing higher  

The EUR/GBP price has moved back above the 200-day simple moving average (SMA) at £0.8487, and, after a modest pullback overnight, it is looking to push above yesterday’s high near £0.8540.

We have significant resistance levels to break at £0.8626 and then £0.87, but the price action last week indicated there was significant support around the £0.8410 area. As long as this holds, dip buyers may well continue to enter and push the price higher.

USD/JPY waiting for the president’s speech

USD/JPY rallies continue to be sold, with the spike late yesterday providing an opportunity for more selling. Bears now need to break the ¥112 level, with a push below this and the 100-day SMA (¥111.90) marking a significant victory.

Below here, ¥110.77 and ¥109.60 are the next areas to watch. A lot will depend on what the president’s speech looks like, but bulls will need a close back above ¥113.29 to indicate that they are back in control.

USD/CAD facing resistance levels  

Having held at C$1.3030 last week, the USD/CAD price has pushed steadily higher and is now knocking on the door of resistance at the first weekly pivot, C$1.3187.

A break above this level would then suggest a continuation to the 100-day SMA at C$1.3280. The end of last week saw a furious battle for C$1.31, so this is the area the bears will need to break as a first step. Even then, C$1.3030 still stands in the way. 

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