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

The euro and sterling continue to lose ground versus the dollar, but USD/JPY is mounting a strong defence of its rising trendline.

Source: Bloomberg

EUR/USD tests $1.14

The losses continue for EUR/USD, and a small overnight move higher was met with selling as the price pushes below the support zone around $1.14. From here the $1.13 low from mid-August comes into play.

The pair has been in a downtrend from late September, with the mid-October rally creating a lower high. Any bounce that fails to break $1.15 is another selling opportunity.

GBP/USD turns lower again

A steady downtrend continues for GBP/USD, and with the price now below the early October low of $1.292, further losses seem likely. Potentional support sits at $1.2773 and $1.2635.

Any rally intraday that holds below $1.30 would be another selling opportunity, while a close above $1.305 is needed to suggest the buyers are back in charge.

USD/JPY holds rising trend

While USD/JPY has had a tough couple of days, the pair continues to hold the March rising trendline.

Further gains will target ¥113.00 and then ¥113.64 and ¥114.50. The bullish view persists unless we see a close below ¥111.62, the low from last week.

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