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

A mixed picture for the dollar sees potential weakness for the yen and the Aussie dollar against the greenback, while the euro looks set for a period of weakness.

Dollar and pound
Source: Bloomberg

EUR/USD showing signs of reversing lower once more

EUR/USD managed to break higher yesterday, following the gains seen late on Wednesday. However, we are seeing the pair now break below the key $1.0647, which brings about the potential for a more protracted move lower to end the week.

Given that break, any move higher would be expected to fall short of the $1.0679 peak seen yesterday.

USD/JPY shows signs of further weakness

USD/JPY has sold off heavily over recent days, with yesterday’s low of ¥113.08 providing a key reference point for this morning.

A break and hourly close below that level would provide a more bearish outlook for the coming days. It is worth bearing in mind that the wider trend remains bearish given the recent inability to break through ¥115.38. 

AUD/USD weakness would provide bullish entry

The Australian dollar has been a strong performer of late, with a clear uptrend for AUD/USD. We have seen a repeated pullback to the 50% retracement overnight and, with the current break below that level, it looks like we could get a better entry price for longs.

Essentially as long as $0.7637 remains unbroken, another leg higher seems likely, with retracements providing opportunity. 

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