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

The dollar is back under pressure thanks to Trump’s failed bid to reform the US healthcare system. With key levels taken out, could this be the beginning of another big move for EUR/USD, GBP/USD and USD/JPY?

Dollar notes and pound coin
Source: Bloomberg

EUR/USD gaps into new three-month highs

EUR/USD has started the week in a bullish fashion, with the price jumping through the crucial $1.0829 resistance level at the open. The next hurdle to overcome is $1.0874, yet ultimately we now have the required move to lead us to believe that we will see further gains to come for the medium term.

An hourly close above $1.0874 would provide a position where we could see this pair push higher in a meaningful manner, given the distinct lack of significant resistance above that level. We would need to see a break below $1.0760 to provide a more bearish view. 

GBP/USD punches higher on weak dollar

GBP/USD has followed a similar path to that seen across the FX market, with the weak dollar causing a spike in the pair this morning.

Crucially we are now attempting to push through the $1.2570 mark, where the next resistance level comes at $1.2711. As such, it looks like we are going to see further gains, with a break below $1.2469 required to negate this uptrend. 

USD/JPY breaks lower from consolidation

USD/JPY has dropped lower at the open, following from a consolidation, which utilised the key ¥111.59 level as new resistance. This should spark another leg of this downtrend, where a bearish outlook is in place unless we break back through ¥111.59 resistance.

There is a distinct lack of notable support levels to the downside, so this could be the beginning of another shaky week for the pair.

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