FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Economic data has sent the euro reeling versus the US dollar, and with GBP/USD looking at risk of further losses and USD/JPY stuck at resistance, there are signs of risk aversion across FX markets.
EUR/USD knocked back by data
German purchasing managers index (PMI) figures have weighed on EUR/USD, causing the pair to drop back below $1.13 and give back most of the gains of the past few days.
If this is the beginning of a deeper retracement then the $1.118 lows come back into play. The bearish view prevails unless we see a close back above $1.132.
GBP/USD stuck in descending triangle
Dips into the $1.30 area continue to find support for GBP/USD, and rallies since mid-March have been contained by trendline resistance from the March highs above $1.3350.
A rally through $1.31 is needed to break this line. The descending triangle on the four-hour chart remains intact, and a close below $1.297 would likely mark a fresh bearish development.
USD/JPY still held beneath ¥112
The USD/JPY pair remains unable to break ¥112.00 resistance.
A continued failure to push higher targets ¥110.80, and then down to ¥109.70. A break higher still looks to challenge trendline resistance at ¥112.60.
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