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

The euro has fought to hold vital support, while cable is still on a downward trajectory.

EUR/USD holds critical support

EUR/USD remains at the crucial area of support around $1.1554, which held back in late August. While it dipped below this yesterday, the rebound saw it finish around the same level.

A rally targets $1.18, where gains faltered in July and in September. A close below $1.1554 is needed to open the way to fresh downside.

GBP/USD on a downward path

GBP/USD lost the rising trendline that had held since mid-August, continuing its decline from $1.33.

Further losses will target $1.2940, the low from Tuesday, and then below this, $1.2773. A recovery above $1.3121 would be needed to suggest that the buyers are back in charge.

USD/JPY continues upwards

After yesterday’s small move lower we have seen a recovery for USD/JPY, holding the ¥113.64 level.

A fresh push above ¥114.00 targets ¥114.50, which had been significant resistance throughout 2017. A deeper pullback below ¥113.64 would target rising trendline support from the March lows, around ¥112.00.

Live #IGForexChat

Put your question to the experts during our live IG Forex Chat.
Streaming on 4 October at 6.30pm (UK time).

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.

Find articles by analysts