FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD and GBP/USD are both falling back against the dollar, while USD/JPY is still unable to break higher.
EUR/USD creates new lower low
The downtrend continues for EUR/USD, with the creation of a new lower low.
The daily moving average convergence divergence (MACD) has rolled over as well, following the lead set by stochastics last week. Further declines head towards $1.112, and then below this it is some distance to $1.085 and the next big area of potential support. Short-term rebounds head towards $1.125, and a daily close above this and then above $1.13 is needed to provide a more bullish view. The longer-term downtrend, in place over the past year, continues to prevail.
GBP/USD bears still in control
Rallies continue to be sold for GBP/USD, as we saw yesterday.
As a result the push lower looks to continue, with the $1.278 area the next zone of possible support. Lower highs have been seen this week at $1.30 and $1.296, so a sustained rally needs to push past these in the short-term.
USD/JPY still stuck below ¥112
The price of USD/JPY rallied through the ¥112.00 resistance zone this morning but was unable to hold on to its gains.
A push below ¥111.60 would be a first step in a bearish direction, breaking rising trendline support from the 22 March low. Below this ¥110.80 and then ¥110.35 come into play.
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