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

Today's theme is all about tracking short-term trends, with the likes of EUR/USD and USD/JPY looking likely to continue their slow grind lower.

Euro dollar
Source: Bloomberg

Will EUR/USD spike falter again?

EUR/USD has seen a spike through the 50-hour simple moving average this morning, as the pair attempts to regain ground lost over the past ten days.

There is a clear downtrend in play in the short-term and we are inclined to expect this to continue until a reversal signal occurs. Given the overbought stochastic, coupled with the fact that price typically finds it hard to sustain above the 50-hour SMSA, it seems likely that sellers will once more come in around this area.

This bearish view remains unless we see a closed hourly candle above $1.1160. Key support levels are $1.1086, $1.1059 and $1.1000, with $1.1160, $1.1193, $1.1252 and $1.1338 the next key resistance levels. 

GBP/USD sell-off not so obvious

The sell-off in GBP/USD seen on Tuesday looked to provide a clear downside breakout for the continued sell-off which dominated the beginning of 2016. However, the four-hour chart shows that we have since created a new higher high and now seem to be setting a higher low.

This therefore looks like another bounce could be around the corner. With the morning’s low being set at the 61.8% retracement, there is a good chance we could see the pair move back up through $1.4396 today.

As such, a bullish view is now in play for the short-term, with a move back below $1.4235 the signal that the sell-off is back on the cards.

Key support levels are $1.4297, $1.4235, $1.4149 and $1.4080. Key resistance levels are $1.4396, $1.4516 and $1.4566. 

USD/JPY continues to grind lower

USD/JPY has seen a marginal tick higher this morning, yet with this set within a clear downtrend so far this week, further losses seem likely.

With the pair having seen a significant sell-off earlier in the year, we appear to be back on the wider trend with this move lower.

As such, a bearish view remains unless we see an hourly close above ¥113.37. Support levels of note are ¥111.66 and ¥110.99.

Resistance levels are at ¥113.20, ¥113.37 and ¥114.39.

USD/CAD flag points to further gains

USD/CAD has seen a strong move higher over the past 24 hours, reflecting the move lower in crude prices. This morning we are seeing a bullish flag formation coming into play, which is a continuation pattern and points towards further upside.

Thus we are bullish for another move higher, with resistance levels of C$1.3783 and C$1.3816 coming into view. Support levels of note are C$1.3716, C$1.3706 and C$1.3653. 

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