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

The Fed’s hike has not boosted the dollar, and even the apparent desire for two more hikes this year has failed to lift the greenback. 

Source: Bloomberg

EUR/USD recovers from Fed hike

Despite the Federal Reserve’s (Fed’s) turn towards a more hawkish policy last night, EUR/USD has managed to rise, moving back above $1.18 and holding the rising trendline from the May lows.

A move above last week’s high at $1.1840 would open the way to $1.1915 and $1.1996. A move below $1.1770 risks the loss of the rising trendline, targeting support at $1.1717.

GBP/USD bounce finds its legs

GBP/USD rallied off the lows yesterday, bouncing from $1.33.

The next target is $1.3472, the highs from last week, and then $1.3550. Buyers defended the area around $1.3320 yesterday, so a close below that is needed to open the way to $1.32, the May low.

USD/JPY continues to weaken

USD/JPY has created a lower high after faltering at ¥110.84.

This potentially raises the prospect of a move back to the rising trendline from the March low, suggesting support around ¥109.00. A turn higher targets ¥110.84, and then the May high at ¥111.39

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