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

The dollar continues to show signs of weakness, with EUR/USD and GBP/USD gaining while USD/JPY fails in its attempt to break higher.

Cashier counting out euro and dollar notes
Source: Bloomberg

EUR/USD extends post-referendum gains

EUR/USD has seen an incredible recovery despite the negative result of Sunday’s Italian referendum, with price breaking out from the $1.0525-$1.0606 range to post a bullish short-term outlook. Despite a short pullback, we are seeing price rise once more, as it moves back towards yesterday’s highs of $1.0796. An hourly close above that level points towards further gains, with key resistance levels of note at $1.0822, $1.0851 and $1.0912.

GBP/USD continues its ascendancy

GBP/USD is once more moving higher, as the recent rally continues apace. It is worth noting price is approaching a crucial resistance level at $1.2796 (July 2016 low). There is likely to be some form of response at that level and bulls should be wary of that price. Nevertheless, a bullish outlook remains unless we see an hourly close below $1.2656.

USD/JPY rally fails to follow through

USD/JPY broke through trendline resistance yesterday in a sign that we could see the pair push into the uptrend once more. However, with price failing to move above 114.83, we have seen a pullback for continued consolidation. As such, we would need an hourly close above 114.83 to provide a bullish outlook, with an hourly close below 113.34 facilitating a more bearish short-term outlook.

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.