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

FX markets are back in ‘risk-on’ mode, as rallies in EUR/USD and GBP/USD continue.

EUR/USD rally moves into a fifth day

EUR/USD has climbed steadily over the past five sessions and is now headed towards the area around $1.1750 that has stifled progress since the beginning of July.

A close above $1.18 is needed to clear this zone of resistance and open the way to $1.1850 and then $1.20. A bearish view requires a close below $1.1550.

GBP/USD pushes higher

The breakout continues here for GBP/USD, with an elegant trend from the lows of mid-August still in play.

Dips towards $1.29 may well find buyers, while fresh gains will push the price towards the $1.32 level. Above here, the $1.3472 area is the next one to watch.

USD/JPY records new higher high

USD/JPY clocked up a new higher high in its rising trend from the August lows.

Yesterday saw the price push above the ¥111.80 high from late August, and while we have seen some weakness this morning, the overall push higher remains intact. Further gains target ¥113.00, while a drop back towards ¥111.00 may well see buyers emerge.

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 writer

Find out more about