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

More dollar strength has been seen in currency markets, as EUR/USD touches a fresh low for the year.

EUR/USD bounce falters

EUR/USD has plumbed to a new low, continuing its extended downtrend and heading towards possible support at $1.111.

A rally will target $1.13, previous key support, while above this the November high at $1.15 comes into play. Having rallied from oversold intraday conditions, it will be important to watch the $1.126 area. A failure to break above this would suggest a lower high and bring more selling pressure into the picture.

GBP/USD still under pressure

GBP/USD created a new lower high last week, and further declines will target $1.2773.

A bounce from intraday oversold conditions needs to clear $1.295 to suggest more near-term upside. A failure to push above here would bring out more selling pressure, and below $1.2827, Monday’s low. The price heads towards the October low at $1.2696.

USD/JPY keeps on rallying

The ascent of USD/JPY continues, consolidating above ¥114.00 and on course to target the ¥114.50 area seen at the beginning of October.

Dips have been firmly bought over the past few days, so we would need to see a move below ¥113.00 to suggest some near-term weakness.

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