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

Cable was unperturbed by CPI yesterday, so investors wait to see what impact employment figures will have. 

Dollar and pound
Source: Bloomberg

EUR/USD turns lower again

A further day of losses yesterday saw EUR/USD bounce from $1.1740, but then turn lower once more. Any rally needs to take out the $1.1780 high from Tuesday, which would allow the pair to contemplate a move to the $1.1820 high from Monday’s session.

A drop through yesterday’s low would bring the $1.1662 level back into play as potential support.

GBP/USD holds above previous lows

Consumer Price Index (CPI) data yesterday failed to provide much inspiration for GBP/USD, so we wait to see if employment data can provide any greater catalyst. The price is holding above yesterday’s lows of around $1.3150, but any rally over the longer-term needs to break above the $1.3350 highs from last week.

Otherwise, a drop towards the $1.30 level and the post-March rising trendline is a distinct possibility.

USD/JPY gains strength from bounce

The bounce off ¥111.68 on Monday has given USD/JPY the strength to rally further. The highs of ¥113.00 and then the ¥113.50 from earlier in the month are now in sight.

A daily close below ¥111.50 would be needed to reverse the bullish outlook. For now, it seems that intraday dips will continue to find buyers.

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