FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD, GBP/USD, and USD/JPY are all heading higher, with the yen clearly the weaker currency amid wider dollar weakness.
EUR/USD heading higher after overnight pullback
EUR/USD is heading higher this morning, following on from an overnight pullback that brought us back into the $1.1295 support level.
The pair has been showing initial signs of a possible bullish reversal, and a break through $1.1334 and $1.1341 would provide us with the bullish confirmation from here. As such, things are looking more bullish for the short-term picture if we rally through that zone. However, be aware that any such resurgence is likely to be a retracement of the sell-off from $1.1514.
GBP/USD seeking to break key resistance
GBP/USD is turning higher once more this morning, following on from a shallow retracement overnight. This points towards a potential resurgence and bullish breakout.
As such, watch for a possible break through the $1.2939-$1.2959 resistance zone to bring about a bullish short-term picture. Much like EUR/USD, such a breakout would provide a likely wider retracement of the sell-off from $1.3213 rather than the start of a complete bullish reversal.
USD/JPY starts to ramp up rally
The USD/JPY uptrend is gaining traction, following on from a period of weakness last week.
This ramp up in bullish price action provides confidence that this is going to be the start of the next leg higher, with a rally through ¥111.13 likely to play out as a continuation of the 2019 uptrend. A break below ¥110.45 would start to bring this bullish outlook into question.
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