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

Dollar weakness is driving new highs in EUR/USD, while cable has recovered and USD/JPY looks set to break lower.

Dollar and euro
Source: Bloomberg

EUR/USD highest since 2015

The uptrend has come roaring back to life on EUR/USD, pushing to its highest level since 2015. With the price overextended intraday, it may be prudent to wait for a dip to buy, perhaps with a move back to $1.1950, but overall the path looks higher from here.

Possible resistance might be the $1.2042, the July 2012 low, but it seems that the pair is in no mood to stop just yet. 

GBP/USD pushed by dollar weakness

The recent bout of USD weakness has put the fight back into GBP/USD as well. The first area to watch is $1.3048, assuming the price can breach the 50-day simple moving average (SMA) at $1.2954. Above here the August peak at $1.3250 comes into play.

A reversal back below $1.2775 would put a more bearish spin on things, but pullbacks towards $1.29 or $1.2850 should see more buyers emerge. 

USD/JPY about to break support?

Support has been found at ¥108.50 for the past couple of weeks on USD/JPY, but it looks like this is about to give way.

The June low at ¥108.13 is the area to watch, and then ¥107.45 below this. Rallies back in the direction of ¥109.40 look to be further selling opportunities. A move above ¥111 is needed to negate the bearish outlook.

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