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

Dollar strength last night has faded somewhat, with good PMI numbers putting new life into cable and EUR/USD. 

JPY notes
Source: Bloomberg

EUR/USD fighting back after Fed meeting

EUR/USD continues to trade in a 100-point range, with purchasing managers index (PMI) numbers this morning helping to put some fight back into the euro after a relatively hawkish Federal Reserve meeting yesterday.

Still, the price will need to clear $1.0950 to ensure further gains. Support is available around $1.0850 and then $1.0830, beyond which we look to the bottom of the April gap higher, at $1.0778.

GBP/USD expecting greater direction

GBP/USD's early weakness this morning has been turned around, while the key services PMI is expected to provide greater direction. The $1.2846 support has been held, so we could see a move back towards $1.2965, the high from the end of April.

Weakness would suggest a test of $41.2846 and then down to $1.2775, which held throughout late April as support.

USD/JPY pushing higher

The Fed meeting last night fired up USD/JPY, pushing it to its highest level since the second-half of March. Now the crunch time is upon us, as the price hits the descending trendline off the January high.

If the price fails to move above ¥113 sellers may return, although the daily chart requires a move above ¥115.50 to create a new higher high. A drop from here would suggest a move back to ¥111.70 and ¥110.

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.