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

The euro has recovered $1.20, but most markets are now waiting to see what the Fed meeting will bring.

Euro
Source: Bloomberg

EUR/USD pushing towards new highs

EUR/USD has moved back to $1.20, and could well push on to challenge the $1.21 peak from earlier in the month.

Inability to push higher from here still risks a drop back to $1.1850. However, given the strength of the trend it looks like a push to fresh highs is likely. 

GBP/USD finding buyers after consolidation

GBP/USD looks to be consolidating before a fresh push higher, having found buyers around $1.3450.

A bigger retracement towards $1.3360 could see fresh buyers emerge. A move above $1.3670 would then clear the way to test $1.3836.

USD/JPY downtrend to continue

Having steadily rallied over the past two weeks, USD/JPY has stalled at ¥111.70. A turn lower from here would indicate that the broader downtrend from the highs of last December has resumed.

Short-term support is possible around the ¥109.50 area, while a break above ¥111.70 would then head towards the 200-day simple moving average (SMA) at ¥112.20. Above here the July highs at ¥114.37 come into play. 

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