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

Dollar weakness has been a key driver, with EUR/USD rising, while USD/JPY sells off. Meanwhile, EUR/GBP has seen significant selling, with the pair hitting a major support zone.

EUR/USD retraces after recent rally

EUR/USD is pulling back, after a week of gains that took the pair into a three-year high. This recent breakout from consolidation brings us back into the primary uptrend.

So far, this morning’s retracement has taken us into the 76.4% Fibonacci level. This is expected to bring about bounce, with a drop below $1.2384 required to negate this short-term uptrend. That being said, be aware that with the European Central Bank (ECB) meeting due today, there is a significant chance that Mario Draghi will seek to devalue the euro, raising the likeliness of short-term volatility.

EUR/GBP falls into crucial support zone

EUR/GBP has sold off sharply into the £0.8689 support level this week, with the price moving into the double top downside target.

This double top projection is coupled with the December low, and a descending trendline from late September to form a highly notable area of support for this pair. The wider descending channel context means we are likely to turn higher once more in the near future and, given the significance of this support zone, it is worth noting that we could see some form of reaction at this level. Should the price break £0.8689, there is the bottom end of the channel to contend with, around £0.8655.

USD/JPY rebounds after substantial sell-off

USD/JPY is seeing some marginal gains this morning, as the pair attempts to regain ground off the back of a substantial move lower thus far this week.

The ¥109.47 level is going to be key here, with a break through there pointing towards further upside. Until that happens, another move lower looks likely before long. 

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.