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

The dollar’s run has been stopped in its track by Donald Trump, who has taken aim at the Fed’s policy of raising interest rates. 

EUR/USD lifted as Trump takes on Fed

EUR/USD bulls have been given an opening by remarks from the White House that have put pressure on the dollar.

The rebound from $1.13 continues, but buyers will want to see the price back above $1.1550 in order to suggest that the rally has broken through the previous support zone around this level that has now become resistance. From here, $1.1628 then comes into play, followed by the $1.1650 area and downtrend resistance running from the May highs. Dips towards $1.14 may find buyers, with a move below $1.1350 suggesting a move back to $1.13 support.

GBP/USD reclaims $1.28

Here too for GBP/USD a rebound is in play, but it remains a short-term bounce unless we see a firm push above $1.31.

Any failure below this level would suggest a chance to sell the pair once again, with a view to it falling back to $1.2635 and the lows from last week. Above $1.31, $1.3204 comes into play.

USD/JPY falls to 200-day SMA

USD/JPY dropped below ¥110.30 support that has held since early July, but has bounced from the area of the 200-day simple moving average (SMA) at ¥109.85.

The price continues to be constrained by the descending trendline from the July high, so any sustained rebound needs to move above this line (which would suggest a push above ¥111.00). Further declines will see the ¥109.50 support zone tested.

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