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

The dollar resurgence looks to continue, with USD/JPY strength and GBP/USD strength both looking likely to re-emerge. 

Pound and dollar currency
Source: Bloomberg

EUR/USD attempting to break higher once more

EUR/USD is rallying once more, set within a downtrend which has lasted all of two days. Crucially, since we broke through the $1.1162 resistance level, the wider perspective points towards further upside for the short-term, yet a wider bearish outlook.

As such, while we are looking for another leg higher soon, we have not seen a sign to show that this move is happening quite yet. With that in mind, a bullish outlook comes back into play with either a break above $1.1182 or upon retracing down to the $1.1099 level.

Ultimately, we would need to see price break below $1.1071 to negate this bullish view. 

GBP/USD downtrend continues apace

Yesterday saw yet another break lower for IN_GBPUSD, with price consolidating since. Essentially, we are looking for two triggers for potential shorts. Firstly, a rally into the 76.4% retracement at $1.3006 would look like a good area to get short for a move back towards the downside.

Alternately, an hourly close below $1.2936 should signal another leg lower. Essentially, we will need to see an hourly close above $1.3028 to negate this bearish short-term view. 

USD/JPY rally looks set to continue

IN_USDJPY is currently consolidating following another leg higher yesterday. The pair has rallied from the 76.4% and trendline support earlier in the week. This short-term rally looks likely to continue and as long as price does not break below ¥101.76, we are looking for another move back through yesterdays high of ¥102.20.

Look out for the ¥101.87 level as a potential reversal point to the current weakness, with this level providing an interesting area for longs.

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.