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

The dollar is under pressure once more, with EUR/USD gaining while USD/JPY continues to trend lower. Meanwhile, EUR/GBP is challenging a crucial resistance level this morning.

Despite pullback EUR/USD likely to turn higher

EUR/USD is moving lower this morning, bringing the price towards the 61.8% Fibonacci retracement.

Given the clear uptrend in place over the short term, there is a strong likeliness that the price will turn higher once more in the near term. The middle Bollinger band 20-simple moving average (SMA) is also coinciding with this area of support, adding to the notion that the pair will soon turn higher. A break below $1.2345 would be required to negate this bullish outlook.

EUR/GBP at major resistance level

The pair has continued its short-term uptrend, with EUR/GBP moving into the crucial £0.8911 resistance level.

A break through this level would negate the wider descending channel formation and point towards a resurgence for the pair. However, until then, there is still a chance we could see this resistance level respected once more. With a wedge in place, there is a chance of a move lower, if we were to break below £0.8857.

USD/JPY turning lower from Fibonacci resistance

USD/JPY has managed to rally into the 61.8% retracement this morning, with the recent downtrend remaining intact, despite short-term gains.

This bounce provides us with another possibility to short this market, with a break through ¥107.91 required to negate the bearish outlook in play.

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