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

The US dollar begins to look more bullish within EUR/USD and USD/JPY after Trump’s pro-dollar comments. Meanwhile, EUR/GBP begins to turn higher from channel support.

Source: Bloomberg

EUR/USD rally may not last

EUR/USD has managed to regain ground following a Trump-fueled sell-off yesterday. The break below $1.2384 brings about a heightened chance that we will begin to trend lower over the short term.

As such, the recent bullish outlook is tempered somewhat, with a strong chance that this morning’s gains are a retracement rather than a push into new highs. 

EUR/GBP rallies from crucial support zone

EUR/GBP has managed to rebound from the crucial £0.8689 support level, with the pair looking to continue trading within the descending channel formation.

Confirmation of a bullish outlook for the near term would come with a break through £0.8795 resistance. Until then, there is still a chance that we are looking at a retracement within the recent sell-off. 

USD/JPY shows initial signs of strength

USD/JPY managed to break through the ¥109.47 swing high yesterday, with the price gaining ground after US President Donald Trump’s comments.

This raises the chance that the price will move into a more bullish phase for the short term, with the near-term directional bias being dictated by a move below ¥108.50 (bearish) or above ¥109.77 (bullish).

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