FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD is attempting to break free of the dollar strength story, while GBP/USD and USD/JPY are likely to see the greenback regain dominance.
EUR/USD showing signs of potential bullish resurgence
EUR/USD managed to break its trend of lower highs and lower lows today, with a break through the $1.131 high from Thursday. This is a tentative sign of strength, set within a period of weakness that has take us below the crucial $1.129 support level. That points towards further downside to come, yet there is still a chance we could rebound to provide a wider retracement of the sell-off from $1.1514.
A failure to break below Friday’s low of $1.1234, followed by a break through today's peak of $1.1325, would signal a potential recovery phase coming into play. However, until that happens we remain within a bearish trend that could dominate once again.
GBP/USD rally looking at risk of bearish turn
GBP/USD has been on the rise over the past two days, with the pair moving into the 76.4% retracement at $1.2915.
The downtrend in play over the past three weeks points towards a likely bearish turn from here, with a rally through the $1.2959 swing high required to bring about a more bullish short-term view. Until then, a bearish outlook remains in play.
USD/JPY grinding higher after downturn
USD/JPY has been moving gradually higher after a period of weakness on Thursday.
The uptrend in place throughout 2019 to date points towards another move higher, with a break below ¥109.55 required to negate the bullish trend. Whether or not we break back into the deeper Fibonacci retracements remains to be seen, although another surge higher does look likely before long.
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