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

The euro has finally managed to move higher, but cable is still struggling, as investors await the vote on the withdrawal agreement.

EUR/USD finally clambers above $1.14

The price of EUR/USD has climbed steadily higher and is finally managing to move and hold above $1.14.

Since the end of November the price has established higher lows, at $1.127 and then $1.13. As a result, further sell-offs may create higher lows, and it would need a move back below $1.13 to negate the more bullish view. Upside targets lie at $1.1475, and then on to $1.1554.

GBP/USD unsteady ahead of Brexit vote

It promises to be a volatile week for sterling, with the Brexit withdrawal vote scheduled for Tuesday evening. ‘Sell the rallies’ still appears to be the way here, as even this morning’s bounce towards $1.275 brought out the sellers for GBP/USD.

However, dips below $1.27 have proven short-lived, so bears need to see a daily close below this level to ignite more downside. Bulls will need a move above $1.285 to suggest the new approach is to ‘buy the dips’.

USD/JPY bounces from 100-day moving average

For the second time in three sessions USD/JPY has bounced off the ¥112.25 area, coinciding with the 100-day simple moving average (SMA).

If the bulls can hold this it will be a first step, but they would still need to recover ¥113.00 and break the sequence of lower highs in place since the end of November. If the bears can get a daily close below ¥112.20 then momentum should carry them on towards ¥111.50.

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