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

The dollar is coming under pressure, with gains across the likes of EUR/USD, GBP/USD and USD/JPY this morning.

Euro and dollar
Source: Bloomberg

EUR/USD testing key resistance

EUR/USD has managed to break higher from a falling wedge formation this week, with the price breaching through $1.1787 resistance. The big test comes at the $1.1832 level, which if broken, would lead to a wider bullish picture for the pair.

With that in mind, keep an eye out for that level, where an hourly close above it would point towards further gains and a more positive outlook for the pair.

GBP/USD rallies into key resistance zone

GBP/USD has also seen significant gains this week, yet with the price having failed to push above $1.3292 thus far, the downtrend remains intact. Up above, we have a crucial region of resistance, with the 50 and 200-period simple moving averages (SMA) accompanied by the 76.4% retracement, and the swing low set last Tuesday.

Watch out for any potential break or reversal from the $1.3222 region, as it will be key in determining where the pair goes from here. A break above $1.3292 would be required to negate this recent downtrend.

USD/JPY rolling over after consolidation

USD/JPY has finally broken lower after a recent slowing of the bullish trend. The move below trendline support, and the ¥112.32 swing low has since been joined by a rally back into trendline resistance.

As such, we are now likely to see a renewed break lower, as the market continues to turn around. A break above the ¥112.83 swing higher would be required to negate this bearish short-term view.

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