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

EUR/USD and GBP/USD have been breaking higher after yesterday’s BoE meeting. However, the dollar looks set to strengthen against the yen, with USD/JPY turning higher once more. 

EUR/USD rebounds from key support zone

EUR/USD is breaking higher from the $1.1510 support level yet again, with yesterday’s Bank of England (BoE) meeting helping drive European FX higher.

The break through $1.1644 provides a bullish short-term view, with questions raised over whether we are seeing a retracement or bottom for the pair. Key to this is the fact that we have seen flat-lining bottoms, given the failure to break to a new low yesterday. With the price breaking above $1.1644, it looks likely that we will head higher, with the 61.8% and $1.1727 level being the first zone of resistance. A break through $1.1852 would signal a wider recovery phase for the pair. Until then, there is a chance this will be a retracement within a wider bearish downtrend.

GBP/USD breaking higher, yet downtrend remains

GBP/USD has also been gaining ground off the back of yesterday’s BoE meeting, with the price rallying into the $1.3301 resistance level this morning.

Given the downtrend in place, there is a chance we could see another turn lower before long. However, regardless of whether we see this as the beginning of a wider rally or not, the near-term picture points towards further short-term gains if we break $1.3301. A rally through $1.3472 would be required to negate the wider downtrend in place.

USD/JPY turning higher from Fibonacci and trendline support

USD/JPY is turning higher yet again this morning, following on from a sharp move lower yesterday.

The trend seen throughout June has provided us with higher highs and higher lows, which would be negated in the event that the price breaks below ¥109.55. Until then, there is a good chance we will see further upside to come for the pair.  

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