FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Euro watchers will be pleased to see EUR/USD hold the 50-day SMA, but sterling remains unable to break $1.29.
EUR/USD holds 50-day SMA
For the past three days, EUR/USD has found support at the 50-day simple moving average (SMA) of $1.1384, with dips below this moving average finding buyers.
If this holding action continues, then a bounce back towards $1.1471, the 100-day SMA, would be one to watch. A loss of this zone would bring $1.13 back into play.
GBP/USD held below $1.29
GBP/USD has been stuck fast at $1.29 for several days. A failure to break higher raises the risk of a deeper retracement.
Near-term support lies at $1.2773 (close to the 50-day SMA at $1.2763 too), while a bigger dip finds support around $1.27. Above $1.29, the price targets $1.3039.
USD/JPY pulls back from overnight high
Since yesterday's high, the USD/JPY price has pulled back, but the uptrend from the lows of last Thursday remains intact. Even a dip to ¥108.50 would still be a possible buying opportunity, and for now the price is holding above ¥108.70.
A fresh move higher, reinforced by the bullish crossover in the daily moving average convergence divergence (MACD) indicator, would target ¥109.20 and then higher.
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