FX levels to watch: EUR/USD, GBP/USD and USD/JPY
EUR/USD and GBP/USD seem poised for further falls after a small recovery, while USD/JPY is attempting to hold Friday’s lows and begin a fresh move higher.
EUR/USD likely to extend declines
Having been rudely knocked back into the descending channel, EUR/USD has seen some buying, but the limited bounce may set the pair up for a selling opportunity, with a renewed push lower below $1.127 targeting $1.118.
A recovery above $1.135 would provide a more bullish view.
GBP/USD quiet ahead of busy week
It promises to be another volatile week for GBP/USD, but sterling is doing its best to rally in early trading against the dollar.
However, it needs to break through to $1.325 to clear the trendline from the 13 March highs. Fresh declines would push towards the key rising trendline support from the January low, around $1.31.
USD/JPY looks to create higher low
USD/JPY suffered a heavy blow last week, but has managed to steady itself around ¥110.00.
If it can bottom out around here then a higher low will have been created, with a move above the 50-day simple moving average (SMA) at ¥110.42 providing a further reinforcement to the bullish view. Below ¥109.57 the price will head towards ¥108.52.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets