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

Dollar strength continues to weigh on the euro and sterling.

US dollar
Source: Bloomberg

EUR/USD stuck in downtrend

EUR/USD is rallying off the lows of Monday’s session, but the overall trend remains intact, with a new lower low having been created. While the price is back above $1.17, the respite could be short-lived.

Unless the price can clear the high from last week at $1.1823, the bearish picture remains intact. The August low $1.1662 is the next big level to watch on the downside, and if this gives way the move lower could be swift. 

GBP/USD pushes lower

A swift drop yesterday maintains the overall bearish picture for GBP/USD.

For now the price is fighting to hold the $1.3268 area, but a drop through here takes the pair on to $1.3050. A recovery would target the $1.3427 level, the high from September 2016. 

USD/JPY rallies back to highs

USD/JPY has recovered from its weakness, moving back above ¥113.00.

Further gains would target ¥114.37, and from here the post-July 2015 downtrend line comes into play. A turn lower would head towards ¥111.68. 

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