FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The dollar’s revival has hit EUR/USD and GBP/USD hard, with both moving sharply lower this morning.
EUR/USD knocked by dollar strength
Yesterday’s EUR/USD rally ended with a fresh push to $1.126, with further losses so far this morning.
Below $1.121, the price will head towards possible support at $1.1116. The bearish short-term view remains until we see a higher high created, with the $1.134 level as a near-term target.
GBP/USD pushes lower
The GBP/USD price has created a new lower low in its current downtrend, as the dollar strength hurt sterling hard yesterday and has been in evidence already this morning.
Rallies should continue to be sold until we see a higher high and, for the moment, that requires a move back above $1.295.
USD/JPY rally targets 200-day SMA
Gains continue here as USD/JPY moves on to challenge the 200-day simple moving average (SMA) of ¥111.27.
The ¥111.47 level, resistance in mid-December, is the next area to watch, but the overall trend is resolutely higher.
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