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

While cable is managing to rise for now, the euro remains under pressure, while USD/JPY is bouncing back from yesterday’s low.

EUR/USD tiptoes higher after losses

EUR/USD is picking itself up off the floor, having suffered heavy losses at the end of last week.

Having been such strong support, it is likely that the $1.15 area will be a major barrier to any upside progress. A move above $1.1628 is needed to suggest that a more bullish view could be developing, and even then trendline resistance from the May highs comes into play around $1.17. A fresh push lower will target $1.1350 in the first instance, and then from there $1.1296 comes into play.

GBP/USD finally manages to bounce

We may be seeing a near-term rebound in cable, although the overall picture is still bearish for GBP/USD.

A rally back towards the 50-day simple moving average (SMA) at $1.3154 would constitute another potential selling opportunity, while a close above $1.32 is needed to create a higher high. A close below the Friday low of $1.2718 would suggest a push towards $1.26 is underway.

USD/JPY rally revives

The sharp rebound for USD/JPY here from the lows yesterday has carried over into Tuesday’s session.

Now, the bulls need to push above the descending trendline from the July highs up at ¥113.20. A failure to break this line might suggest a new move lower is underway, targeting ¥110.00. 

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