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

The euro is moving higher this morning, while the pound has gained little from the PM’s victory in the no confidence ballot.

Source: Bloomberg

EUR/USD challenges trendline resistance

Rallies for EUR/USD continue to be capped by trendline resistance from the October highs, with yesterday’s bounce faltering below this level.

However, the pair is challenging this level this morning, so this is one to watch. Above $1.14 we may see a rapid break higher towards $1.1554. Meanwhile the sellers will need to push the price below $1.13 to suggest support has been broken.

Brexit uncertainty weighs on GBP/USD

Last night’s win by UK Prime Minister Theresa May was already priced in, GBP/USD having moved smartly off the lows during the day.

But having broken sharply lower earlier in the week the pair has now created a lower low and a lower high. Any rally that pushes back to $1.27 may be another selling opportunity, and it would require a recovery above $1.28 to put a more bullish view on the currency pair.

USD/JPY maintains upward momentum

The bounce off the 100-day simple moving average (SMA) is intact, and with a positive crossover looming on the daily moving average convergence divergence (MACD) the bulls could see further upside from here for USD/JPY.

Trendline resistance comes in around ¥113.89, with a break higher from here ending the sequence of lower highs seen since the beginning of October.

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