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

EUR/USD is attempting to break free of the dollar strength story, while GBP/USD and USD/JPY are likely to see the greenback regain dominance.

EUR/USD showing signs of potential bullish resurgence

EUR/USD managed to break its trend of lower highs and lower lows today, with a break through the $1.131 high from Thursday. This is a tentative sign of strength, set within a period of weakness that has take us below the crucial $1.129 support level. That points towards further downside to come, yet there is still a chance we could rebound to provide a wider retracement of the sell-off from $1.1514.

A failure to break below Friday’s low of $1.1234, followed by a break through today's peak of $1.1325, would signal a potential recovery phase coming into play. However, until that happens we remain within a bearish trend that could dominate once again.

EUR/USD chart

EUR/USD chart

GBP/USD rally looking at risk of bearish turn

GBP/USD has been on the rise over the past two days, with the pair moving into the 76.4% retracement at $1.2915.

The downtrend in play over the past three weeks points towards a likely bearish turn from here, with a rally through the $1.2959 swing high required to bring about a more bullish short-term view. Until then, a bearish outlook remains in play.

GBP/USD chart

GBP/USD chart

USD/JPY grinding higher after downturn

USD/JPY has been moving gradually higher after a period of weakness on Thursday.

The uptrend in place throughout 2019 to date points towards another move higher, with a break below ¥109.55 required to negate the bullish trend. Whether or not we break back into the deeper Fibonacci retracements remains to be seen, although another surge higher does look likely before long.

USD/JPY chart chart3

USD/JPY chart chart3


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