FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD and GBP/USD have been gaining ground, with the pound outperforming ahead of today’s parliamentary vote. Meanwhile, USD/JPY is holding up for now, with a key support level being tested this morning.
EUR/USD pushing higher after key support holds up
EUR/USD managed to rebound from the $1.1301 support level on Thursday, with the pair driving higher since.
While the wider creation of higher lows has been negated, last week’s drop took us into the 76.4% retracement of the $1.1215-$1.157 rally. Thus, there are arguments on both the bullish and bearish sides in relation to whether we will see this rally break through $1.157 or not. Whether or not we respect the upcoming Fibonacci resistance is one sign of the market intent. Thus, while further upside looks likely over the short term, watch for whether the likes of the 61.8% ($1.1462) or 76.4% ($1.1503) hold up.
GBP/USD breaks through notable resistance level
GBP/USD managed to rally through the key $1.3175 resistance level on Friday, with the pair breaking out of a long-term downtrend ahead of today’s parliamentary vote.
Technically speaking, expect this uptrend to continue as long as we do not break below the $1.3012 level. Thus, further upside looks likely, with $1.3258 and $1.33 the next big resistance levels to watch.
USD/JPY finding support after trendline break
USD/JPY dropped below an ascending trendline support on Friday, with the threat of a breakdown hinging on whether we see a drop below the ¥109.09 swing low or not.
Thus far, we have not seen that happen, with the price testing and finding support on that key level. As such, watch for either a rebound from here, or a drop below ¥109.09 to signal an impending period of downside.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
