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

A mixed outlook for the dollar sees expectations of a strengthening greenback against the euro and yen, while the pound is enjoying a period of strength, bringing about a more bullish outlook.

EUR/USD turning lower from Fibonacci resistance

EUR/USD is starting to weaken this morning, following on from a rally into the 76.4% retracement.

The creation of lower highs and lows over the past week points towards the possibility of a bearish turn lower once more today. With that in mind, we would need to see a break back up above $1.2314 to provide a shift from this recent bearish trend.

GBP/USD rebounds through key resistance

GBP/USD has been tentatively pushing through the crucial $1.4097 resistance level since Friday, with the price having rallied up from a drop into trendline support on Thursday.

This rally now provides a more bullish outlook, with the wider uptrend coming into play once again. With trendline resistance up ahead, there is a chance we could start to retrace lower in the near term. However, unless we break below the $1.3965 level, there is a chance we could see any retracement lead to further upside.

USD/JPY moving higher from inside trendline

USD/JPY has seen a short-term bounce from the inside trendline dating back to late February. The recent rally through ¥107.01 and ¥107.31 point towards a potential bullish reversal for the pair following months of downside.

Should we push up through ¥107.49, there is a strong chance we will see a strong push higher. The late-February high of ¥107.90 represents the next major resistance level to watch out for. While there are clear signs of a potential reversal, it should be noted that this pair is particularly susceptible to any shifts in the status of the US-Chinese trade standoff, raising volatility.

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