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

The euro has found renewed strength, as has the US dollar, while sterling is readying itself for a barrage of news. 

Source: Bloomberg

EUR/USD defies the doubters

Hopes of further losses for EUR/USD, and a return to the lows of the month have been dashed, at least for the time being. Being tested early in the morning is $1.169, with a close above here on the four-hour chart opening the way to $1.1840 and higher.

However, the downtrend line off the September high would likely step in first at $1.1750. A firm reversal back below $1.1662 is needed, to put a bearish spin on the outlook once more.

GBP/USD braces for a busy time

GBP/USD continues to bounce along the rising trendline from the March lows. Combined with the $1.3048 level, the bulls are finding plenty of support for the time being.

A rally from here would target $1.3153, and then on to $1.3268, with $1.3341 being the peak from October and November. With a data-heavy week beginning with the Consumer Price Index (CPI) today, sterling traders are likely to be in for a volatile time.

USD/JPY turns back towards trendline

Buyers stepped in for USD/JPY last week, as the rally to ¥114.37 faltered, with the pair now making another push towards this level and the downtrend from the January highs.

Above here, ¥115.50 comes into play. The area around ¥113 has prevented further sell-offs for the past month, so a loss of this would bring the October low at ¥111.68 into view.

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