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

A mixed bag for the dollar sees a gradual ascent for both USD/JPY and EUR/USD. Meanwhile, EUR/GBP has hit a major resistance level after recent gains.

EUR/USD expected to turn higher once again

EUR/USD looks likely to follow its 76.4% retracement with another push higher, as the pair moves towards the back end of a triangle formation.

The weakness we have seen in early trade looks like the pair is creating a higher low before we push higher once more. Given the uptrend in place over recent months, the ultimate breakout from this pattern is expected to be bullish, with a fall below $1.2385 required to negate this view. 

EUR/GBP turning lower from key resistance

EUR/GBP managed to rally up to the crucial £0.8833 resistance level this morning, following a wider 76.4% retracement last week.

This points towards the pair breaking higher from here, with a move through £0.8833 resistance expected soon enough. However, until we break that level, there is a chance we could start to retrace lower from here. As such, while a bullish outlook remains in play, be aware of a potential retracement over the short term.

USD/JPY caught between trendlines

USD/JPY has been retracing lower this morning, following a strong move into trendline resistance on Friday. However, with the price having moved into trendline support, we are seeing the pair trade towards the apex of a symmetrical triangle formation.

Should we break through resistance, there is a strong chance we would simply see a deeper retracement into the 76.4% before turning lower once more. As such, we would need to break above ¥111.48 to negate the wider bearish trend, where this current upside is seen as a short-term pullback, within a bearish USD/JPY story.

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