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

PMI readings for the eurozone have bolstered EUR/USD, while USD/JPY has turned lower after yesterday’s bounce.

EUR/USD rallies towards $1.17

The price for EUR/USD rallied yesterday, and did move above the 17 July high, but the sellers have returned.

A failure to close above $1.1750 would provide another selling opportunity, and it requires a close above $1.18 to restore a more bullish outlook, opening the way to $1.1852. Further declines bring the $1.15 support zone into play.

GBP/USD finds near-term support

Overnight losses have been reversed, and for the time being it looks like a push higher is underway for GBP/USD.

Today’s current low is above the lows from the end of last week, so a bounce above $1.3150 would suggest a broader move higher is underway, targeting $1.33 in the near term.

USD/JPY turns lower again

The overnight bounce was short-lived for USD/JPY, and it looks like another challenge of rising trendline support will occur today.

A close below ¥111.00 and then also below yesterday’s low around ¥110.70 would suggest a broader retracement is underway. A move above ¥111.60 would indicate that a higher low had been created and that a push to ¥113.00 was in play.

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