FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The euro is still trying to push on after its breakout at the beginning of the week, while sterling is in full reverse. Meanwhile, USD/JPY is looking to push through ¥110 to complete the possible bottoming pattern.
EUR/USD trying to break higher
Gains this week have faltered at $1.125 for EUR/USD, but a sharp dip yesterday found support at $1.118.
If the price can continue to hold $1.12 then it may be able to push back towards $1.126. The continued breakout from trendline resistance would support the bullish thesis, so a close back below $1.117 would negate the more optimistic view.
GBP/USD still in bearish mode
The GBP/USD pair continues to decline, heading towards $1.2773 support.
The drop below the late April support around $1.286 would confirm the bearish view, and intraday rallies should continue to find sellers until we see a move back above $1.2925, the previous lower high.
USD/JPY holds ¥109
Support continues to hold around ¥109.00 for USD/JPY, but rallies towards ¥109.70 have met a wall of resistance.
If the price can move above ¥110.00 then a more bullish view would start to emerge. The consolidation idea remains in place so long as the price holds ¥109.00, but a decline below this would target previous lows at ¥108.50 and ¥107.70.
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