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

Cable’s rally has eased thanks to the lack of a Brexit deal, while USD/JPY is trying to recover after heavy losses yesterday.

GBP/USD
Source: Bloomberg

EUR/USD turns down again

EUR/USD has fallen back towards the $1.1836 area that has provided support over the past week; dips below this level have been seen, but have not turned into deeper retracements.

If this holds, then a push back to $1.1880 and then $1.1950 is possible. Below $1.1836, the $1.1808 and then $1.1725 levels are areas of possible support.

GBP/USD moves back below $1.34

Disappointment at no Brexit deal has caused a deep pullback for GBP/USD in the November rally, but for now it is still a higher low.

A close below $1.3221 is needed to negate the uptrend from the lows of the month. A bounce back above $1.34 would signal that more gains are likely, with a push back to last week’s highs at $1.3550. 

USD/JPY struggles to bounce back

The surge from the lows of last week has been brought to a halt, with the price for USD/JPY dropping back below the 50-day simple moving average (SMA) of ¥112.87.

Further losses would see the area around ¥111.80 tested, and then down to ¥111.00. A recovery needs to post a daily close above ¥113.00 to suggest a broader rally is in progress. 

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