Established in 1974
185,800 clients worldwide
Over 15,000 markets

FX levels to watch – EUR/USD, GBP/USD, USD/JPY

We have seen sharp reversals in EUR/USD and GBP/USD, despite the lack of change from the Federal Reserve last night. 

Pound and dollar
Source: Bloomberg

EUR/USD eyes $1.10

The $1.13 level remains as solid resistance — a push to it yesterday was swiftly knocked back, and now we look to see if the area around $1.1172 can hold as support.

If broken, then $1.1109 comes into play. A drop through this level could see the pair then head back to $1.10, and potentially lower.

EUR/USD

GBP/USD eyes 50-day SMA

Like other currency pairs, cable reversed course yesterday, with this pair back below $1.28 once more. $1.2706 and then $1.2616 are now the levels to watch on the downside, with a break below the latter potentially opening the way to $1.2380.

We would need to see the price reclaim the 50-day simple moving average (SMA) at $1.2822 to become more bullish.

GBP/USD

USD/JPY could drop to April low

The Federal Reserve's uninspiring meeting last night failed to provide much of a boost for USD/JPY. So far though the pair is exhibiting a marked reluctance to move below ¥109.

If this can hold then the possibility of a bounce rises, with ¥110.35 and then ¥110.84 in play as upside targets. A drop below ¥109 raises the prospect of a move to the April low at ¥108.13.

USD/JPY

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find articles by analysts