FX levels to watch: EUR/USD, GBP/USD and USD/JPY

EUR/USD is enjoying a good week, but it looks like the small bounce in USD/JPY may have run its course.

EUR/USD Source: Bloomberg

EUR/USD steady after sharp bounce

The sharp rally yesterday has seen the EUR/USD pair move solidly above $1.15. Further gains target the 200-day simple moving average (SMA) at $1.1639, just above the mid-October peak at $1.162.

If this current move higher marks the end of the $1.13-$1.15 trading range, then we look to the $1.1852 highs from the middle of 2018 as the next longer-term target. Having seen a series of higher lows since the beginning of the month, new higher lows above $1.145 would mark possible buying opportunities.

EUR/USD chart

EUR/USD chart

GBP/USD staled at $1.28

The GBP/USD pair continues to edge above the 50-day SMA ($1.2774).

However, gains above $1.28 have proven too much to sustain, raising the risk of a pullback. A close above $1.28 opens the way to $1.284 and $1.2934, with the 100-day SMA at $1.2896 also a possible area of resistance. Yesterday’s weakness found support at $1.27, and if this is broken, $1.2635 comes into view.

GBP/USD chart

GBP/USD chart

USD/JPY turning bearish after decline

USD/JPY has rolled over and eaten into the gains made earlier in the week.

Having faltered at ¥109.00, we now need to watch to see if the current move higher off the ¥107.80 level fails to recover ¥109.00. If it does bounce and then turn lower, we have a new possible selling opportunity. A recovery back above ¥109.00 would revive a more bullish view.

USD/JPY chart

USD/JPY chart


This information has been prepared by IG, a trading name of IG Markets 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.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.