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

EUR/USD and USD/JPY have reached key trendlines that could be pivotal for their next moves. 

Euros and dollars
Source: Bloomberg

EUR/USD not bothered by Macron’s win

Emmanuel Macron’s expected win in the French elections has seen little reaction in EUR/USD, but interestingly the pair is moving lower after hitting the descending post-April 2016 trendline.

In a longer-term view we may have seen a top for now in the post-December rally, which would suggest a move back to the $1.0750 area. There is plenty of support on the way down, including $1.0950, $1.0906 and then $1.0830. 

GBP/USD keeps going higher

The post-election move higher continues for GBP/USD, having hit its highest level since late September on Friday. The level to watch on the upside is still $1.3058.

Meanwhile, any pullback could find support at the March rising trendline, suggesting a drop towards $1.2735. On the way down, $1.2850 and then $1.2775 are areas to look for support.

USD/JPY remains weak

All eyes are now on the descending trendline off the January high. We saw some skittishness around this last week, but Friday saw a bounce back to the descending resistance line. If it continues to hold then we look to ¥111.7 and then down to ¥110.11 in the short term.

A longer-term view for USD/JPY would suggest a move back to the April lows at ¥108. 

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