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

A big day for EUR/USD, as the European Central Bank announces its latest decision. Meanwhile, dollar weakness seems to be helping to push USD/JPY lower. 

pound sterling and dollar
Source: Bloomberg

EUR/USD continues to tip higher

EUR/USD has tiptoed higher all week, which is not surprising given that today’s European Central Bank (ECB) meeting could be a big one. The pair has clung to the 50-period simple moving average (SMA) on the four-hour chart ($1.1924), but hesitancy ahead of Mario Draghi’s appearance means that the $1.1976 and $1.2040 levels remain unchallenged so far.

A push higher would target these two areas, while it will take a move below $1.1823 to put a more bearish dimension on the price action.

GBP/USD rallies well

GBP/USD has reassembled strongly from $1.28, with dip buyers seizing the chance on the daily chart, given that momentum was so heavily oversold.

Key area of resistance is $1.3050, with a breakout above here likely to open the way to $1.32. A failure to push higher would suggest that a return to support at $1.2811 is in the offing.

USD/JPY starts to fall lower again

After a rally from ¥108.50, USD/JPY has begun to turn lower once more, with the potential for a push below ¥108.50 that will then put the ¥108 level itself under pressure.

Having pushed steadily lower since July, the price will need to break above ¥110.50 to create a new higher high, and reverse the negative outlook. 

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