FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Dollar strength helping drive EUR/USD and GBP/USD lower, yet despite a BoJ rate cut, we have seen the yen outperform overnight.
EUR/USD breaking below Fibonacci support
EUR/USD has been declining throughout the past week, with the price falling below the 76.4% Fibonacci retracement level at $1.124.
The ability to remain below that support level will be key to building a more bearish picture. However, this could be an important turning point if we start to gain ground from here. Given the break through $1.142 last week, there is a good chance we are seeing a retracement before we push higher once more. Watch for a break through $1.1285 to provide greater confidence of a bullish move coming into play.
GBP/USD moves lower after failed indicative votes
This break below $1.3159 points towards downside coming into play, with another higher high looking likely. Until the pair breaks through either $1.3004 or $1.327, it looks likely that we will continue to see price tighten as we await a breakthrough or breakdown in the Brexit outlook.
USD/JPY breaking lower despite BoJ rate cut
Given the downtrend in place since the symmetrical triangle breakdown, this 76.4% retracement looks likely to bring another leg lower for the pair.
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