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

More dollar weakness is resulting in some interesting FX moves, although the impact is limited with the US on holiday for Thanksgiving.

Source: Bloomberg

EUR/USD recovery goes on

The downtrend that prevailed from the 15 November high was broken yesterday, with EUR/USD following on to test the $1.1836 area. The $1.1858 high then came in as the next area of potential resistance.

Even if this is broken, the $1.1879 area will then come into play. Euro bulls have their work cut out if they are to break higher, and move back in the direction of the September highs. 

GBP/USD rally stalls at resistance

Gloomy Office for Budget Responsibility (OBR) forecasts for UK growth knocked back GBP/USD, but only briefly, and a dire durable goods figure provided a fundamental catalyst for buyers to step in.

The rally in November has seen the pair push back to the $1.3341 area. A push above here targets $1.3427 and then $1.3659. A turn lower would suggest that we will retest the March uptrend, but it needs a drop below $1.3048 to really suggest a bearish outlook for the pair.

USD/JPY tumbles further

Dollar weakness has seen rallies heavily sold over the past two weeks for USD/JPY, with yesterday being no exception.

A move above ¥112.77 is needed to create a new higher high. Further declines would see the ¥110.11 level tested. 

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