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

The euro and sterling both remain under pressure, while USD/JPY’s bounce has ground to a halt.

Source: Bloomberg

EUR/USD stuck below $1.18

Gains for EUR/USD this week have been capped at the $1.1780 area, with a push above here likely to target the high from last week at $1.1832.

As long as this holds we are likely to see further selling pressure develop along the line. Below $1.17 and the crucial August low at $1.1662 comes into play. 

GBP/USD plumbs new depths

Despite a better services purchasing managers index (PMI) yesterday, GBP/USD continues to push lower towards the $1.3153 level.

The sequence of lower lows remains intact, and it would take a push back above $1.33 to put any dent in the ongoing bearish outlook. A drop back towards $1.2970 and the post-March rising trendline cannot be ruled out.

USD/JPY stalled at ¥113

USD/JPY continues to be stuck below ¥113.00, with repeated failures to break above this level.

A turn lower targets ¥111.69, and would mean that the latest rally has simply created a fresh lower high in the ongoing downtrend. A close above ¥113.00 would open the way to a move to ¥114.37.

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