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

The dollar loses ground in both GBP/USD and USD/JPY pairs. However, the euro is today’s big loser, with EUR/USD selling off sharply.

Source: Bloomberg

EUR/USD retracement continues apace

EUR/USD has been in retracement mode since topping off at $1.1880 last week. This current sell-off looks like a short-term phenomenon before we move higher once more. As such, keep an eye out for potential Fibonacci support.

The breakout from the current creation of lower highs and lower lows will provide a bullish signal. Until then, further downside looks likely. 

GBP/USD consolidates after resistance break

GBP/USD managed to break through the key $1.3292 swing high on Friday, as it built upon the gains seen in the last week. With the price consolidating around this area, there is a good chance we could see another move higher from here.

That being said, watch out for an hourly close above $1.3338, or below $1.3247 for a greater idea of where this market is heading next.

USD/JPY downside likely to persist

USD/JPY has continued to move lower this morning, following a 61.8% retracement in the early hours. This market looks to have rolled over, so further downside seems likely from here.

Keep an eye out for the most recent swing low of ¥112.05, which if broken, would negate this bearish outlook.

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