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

The euro continues to fall, while cable is about to discover whether its trendline can hold for another day.

EUR/USD takes another leg lower

EUR/USD has continued its downward progression, with sellers firmly in charge after a rebound over the weekend.

The pair has recovered a sequence of lower highs since the middle of February, and with momentum so heavily oversold intraday, a rebound looks possible. However, the pair will need to break firmly above $1.24 to signify that the weakness has come to an end, and as a result the overall picture remains bearish.

GBP/USD trend faces its Waterloo

It is crunch time for the GBP/USD rally. The price has returned to the trendline that has been in place since March of last year.

Yesterday it tested it and held above it, so if it can hold this (and coincidentally the $1.3711 lows from 1 March), then the price may be able to rally. Below $1.3711, the $1.3659 level comes into play, but a break of the trendline would be a very bearish development in the longer term.

USD/JPY keeps on climbing

The weakness seen at the end of last week has been firmly shrugged off for USD/JPY.

Now, the price looks set to challenge first the 200-day simple moving average (SMA) at ¥110.22, and then on to ¥110.48 and ¥110.84. Any dip that holds above ¥108.00 is likely to remain a buying opportunity for the time being. 

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