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

EUR/USD is looking to keep the momentum going with another push higher, while the USD/JPY rally from the November lows falters. 

Source: Bloomberg

EUR/USD pushes higher again

Having stabilised last week above $1.17, EUR/USD has managed to move higher, but now the price needs to move above $1.1808 to maintain upward momentum.

Above this, there is plenty of resistance stretching from $1.1838 to $1.1879. It requires a firm move below $1.1725 to negate the bullish picture here

GBP/USD fighting to maintain rising trend

GBP/USD dropped below the rising trendline from the mid-November lows, although a bounce this morning has seen the price test the line from below.

If the price can avoid a move below yesterday’s lows, then a new higher low will be created, preserving the broader move higher over the past month. If this happens, $1.3427 and then $1.3550 would come into play. Further declines may head towards support at $1.3268, and then $1.3221.

USD/JPY rally falters

The rally from the November lows for USD/JPY has petered out just below ¥113.70, which raises the possibility that a move back below ¥113.33 will begin.

First support is possible around ¥113.09, and then below this the ¥112.00 area comes into view. A drop below this is needed to create a new lower high. The level to watch for any fresh break to the upside is ¥113.70, which would bring ¥113.91 into play, and then on to ¥114.37.

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