CMC MARKETS: EURUSD – the euro continues to close in on the 1.0500 level, after this week’s slide below 1.0800. A break below here has the potential to open up a move towards parity. To stabilise we would need to see a move beyond
1.0800 initially and then the resistance at the 1.1250 area. Only a move back through 1.1270 re-targets the 1.1450 area and last week’s high.
GBPUSD – the pound followed the euro lower yesterday pushing below support at 1.5020 and dipping below 1.4900 to its lowest levels since mid-2013 just above the twin support levels at 1.4825. If we break below 1.4820 the potential for a move towards the May 2010 lows of 1.4230 increases. To stabilise we would need to see a rebound back through the 1.5130/40 level, and then behind that at the 1.5350 level.
EURGBP – the euro found support just above the 0.7000 level before pulling back some ground. Resistance now sits at 0.7110, and the 0.7230 area. A concerted break below 0.7000 could potentially open up a move towards 0.6600 and levels last seen in late 2007.
USDJPY – a marginal new multi-year high at 122.05 earlier this week has seen the US dollar edge back again. The failure to push on through 122.00 only delays the prospect of a move towards the 2007 highs at 124.20. We need to hold above 119.80 for this scenario to unfold.
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