FX levels to watch: EUR/USD, GBP/USD and USD/JPY
A small rebound in USD/JPY might suggest a near-term low is at hand, but the sellers continue to push GBP/USD lower.
EUR/USD stalls after breakout
EUR/USD has pushed through trendline resistance, although gains above $1.125 and the 50-day simple moving average (SMA) have proven hard to sustain.
Dips towards $1.122 have found buyers, while a push back towards $1.12 may encounter support at the previously broken trendline. Further gains above $1.126 are needed to revive the bullish view.
GBP/USD still declining
Losses have continued apace for GBP/USD, with rallies towards $1.304 over the past three sessions providing strong selling opportunities.
Further declines target $1.286, and then on to $1.2773. A more bullish view requires a push back above $1.304.
USD/JPY stabilises for now
The retreat in risk assets has been felt in USD/JPY too, but the price is stabilising for the time being above ¥109.
However, as yet the price is still to break though yesterday’s lower highs at ¥110. A failure to push on above ¥110 would create another possible selling opportunity.
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