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

EUR/USD, GBP/USD and USD/JPY all move sharply lower. With a bounce occurring this morning, we could be looking at another good shorting opportunity.

Pound and dollar
Source: Bloomberg

EUR/USD bounce unlikely to last

EUR/USD sold into the medium-term trend yesterday, with the 50% retracement seemingly the end of the road for its resurgence. We are seeing another retracement higher this morning, which is expected to result in another leg lower.

Given the lack of key swing highs from yesterday’s sell-off, it makes sense to look for resistance at previous key levels, such as $1.1072 and $1.1097. The bearish view holds unless we see an hourly close above $1.1170. Support levels in view are $1.1036 and $1.1024.

GBP/USD sell-off expected to continue

IN_GBPUSD has continued its deterioration yesterday, with another leg lower, creating a new 31-year low. Price now has very few support levels of note to the downside and as such further losses are likely.

Price has broken through trendline resistance and this could point towards a short-term bounce. However, any gains are seen as selling opportunities, where a return to, and below, $1.2800 seems likely before long. 

USD/JPY weakness looks set to continue

IN_USDJPY has finally broken lower following a period of consolidation last week. This morning is seeing a bounce, yet this is unlikely to last. As such, it is worth being bearish as long as price remains below ¥101.76. The next key support levels to note are ¥100.58, ¥100.00 and ¥99.00.

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.