FX Levels to watch: EUR/USD, GBP/USD, USD/JPY

Powell’s speech yesterday has been the catalyst for some interesting moves across the FX space.

EUR/USD given a boost by falling US dollar

The weakening of the US dollar has prompted a sharp rebound in EUR/USD, and the price is now testing the area above the Monday high of $1.138.

Further gains target the $1.147 area that was strong resistance earlier in the month. Some retracement of the sharp move higher might provide a fresh buying opportunity, but it needs a move back below $1.126 to suggest that a more bearish outlook prevails.

GBP/USD rallies on Powell speech

While cable bounced following the Federal Reserve (Fed) chair Jerome Powell speech, it has failed to create a new higher high for GBP/USD, stuck at $1.285.

We may see fresh selling pressure emerge. A move above $1.29 is needed to put a more bullish view on the pair.

USD/JPY gives back gains

After falling sharply, USD/JPY may try to rebound, but it will need to recover ¥113.60 otherwise a more bearish view begins to emerge.

Below ¥113.20 the price heads towards ¥112.40.

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