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

The Fed meeting has put pressure on the dollar, but moves in the euro and sterling remain muted ahead of the big central bank news later today.

EUR/USD recovers from the lows

EUR/USD tested $1.1713 earlier in the week, but a rebound following the Federal Reserve (Fed) decision took it back above $1.1808.

Now we wait to see if it can push on and move through the trio of resistance levels at $1.1836, $1.1858 and then $1.1879. A turn lower raises the prospect of another test of $1.1713.

GBP/USD aims for another move higher

Dollar weakness has given GBP/USD a boost as well, rallying from the lows of the week.

The next upside targets would be at $1.3517, then $1.3549. A more bearish view would require a move below $1.3268.

USD/JPY turns lower

USD/JPY has dropped back from the highs of the week, creating a lower high.

However, the pair has managed to hold above the downtrend line from the November high, finding support at ¥112.50 along with the retest of the downward sloping resistance. A bounce may target ¥113.09 and then ¥113.33, while a drop below ¥112.50 opens the way to ¥112.00 and then ¥111.68.

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