FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Brexit developments have bolstered GBP/USD, while EUR/USD continues to make small gains.
EUR/USD builds on gains
Signs of a recovery remain in evidence here for EUR/USD, as the price continues its rally off the $1.13 level.
Now it targets the 50- and 100-day simple moving averages (SMA) at $1.1389 and $1.1395 respectively, while additional gains head towards trendline resistance from the January highs, which would come into play around $1.144.
GBP/USD leaps once more
News of political developments in both the government and opposition camps, relating to no-deal and a second referendum, was enough to push GBP/USD higher late yesterday.
Now the pair targets $1.32, the highs from late January. Dips towards $1.305 may well find buyers, and a close below $1.304 would provide a more bearish view, at least in the short-term. However, for the moment the buyers are in control, and the progression of higher lows and higher highs is expected to continue.
USD/JPY steadies after retracement
The sharp rally yesterday was knocked back for USD/JPY, but the retreat overnight has created a higher low, and has seen bullish momentum develop.
Fresh gains target ¥111.20, the high from Monday, and then on towards ¥111.65. The past week saw a staunch defense of ¥110.50, so a close below this would produce a more bearish view.
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