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

The Fed’s hike has not boosted the dollar, and even the apparent desire for two more hikes this year has failed to lift the greenback. 

GBP/USD
Source: Bloomberg

EUR/USD recovers from Fed hike

Despite the Federal Reserve’s (Fed’s) turn towards a more hawkish policy last night, EUR/USD has managed to rise, moving back above $1.18 and holding the rising trendline from the May lows.

A move above last week’s high at $1.1840 would open the way to $1.1915 and $1.1996. A move below $1.1770 risks the loss of the rising trendline, targeting support at $1.1717.

GBP/USD bounce finds its legs

GBP/USD rallied off the lows yesterday, bouncing from $1.33.

The next target is $1.3472, the highs from last week, and then $1.3550. Buyers defended the area around $1.3320 yesterday, so a close below that is needed to open the way to $1.32, the May low.

USD/JPY continues to weaken

USD/JPY has created a lower high after faltering at ¥110.84.

This potentially raises the prospect of a move back to the rising trendline from the March low, suggesting support around ¥109.00. A turn higher targets ¥110.84, and then the May high at ¥111.39

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