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

ECB day could lead to significant volatility in euro pairs, while USD/JPY has tried hard to create a new higher high. 

Euro and dollar notes
Source: Bloomberg

EUR/USD dependent on ECB meeting

EUR/USD has continued to fall, pushing below support at $1.1514. However, we still need to see a break of $1.1442 to really put a bearish spin on things.

Otherwise the sequence of higher highs remains intact. Today’s European Central Bank (ECB) meeting should produce more volatility here, so traders need to be prepared for this. A push back above $1.1540 would suggest another attempt to hit $1.16 is in the offing.

GBP/USD getting bearish

GBP/USD is pushing below the $1.3009 support area, and a close below here on the daily chart would likely spark further declines.

The move back below $1.3048 two days ago was a sign of increasing bearish sentiment. Further losses would target the $1.2905 area, and then towards $1.28. It would need a daily close back above $1.3048 to reverse the bearish outlook.

USD/JPY’s bullish momentum weakens?   

A bounce off the ¥111.68 level has seen USD/JPY make a new intraday high, pushing above the Wednesday high at ¥112.23.

However, a failure to push above the 100-hour simple moving average (SMA) at ¥112.32 would signal a weakening of bullish momentum. If the price moves back below ¥112.23 then we have likely seen another failure to rally, with a return to ¥111.68 in prospect. Further gains could target ¥113.10 and higher.

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