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

The euro is trying to rally, while USD/JPY is poised above key support.

Euro and dollar notes
Source: Bloomberg

EUR/USD taking small steps up

A small bounce for EUR/USD yesterday is a possible sign that the bulls are gathering strength, but we still need to see a push back above $1.0689 to confirm that a really bullish move is underway on the hourly chart.

Any failure below this simply constitutes a new lower high. However, it would be a good sign if the pair moved back above $1.06 on the daily chart, signaling that the rally off the December lows is still intact. A close below yesterday’s lows of $1.0569 would signal a possible drop to the February low around $1.0494.

GBP/USD losing momentum

GBP/USD recovered the $1.2376 level yesterday, reversing some of Friday’s losses. However, momentum appears to be waning, and still needs a push above $1.25 to reverse the negative short-term trend.

A drop below $1.2376 would suggest that bears have the upper hand once again and could suggest a drop back to the rising trendline off the October low, which would indicate a target around $1.22.

USD/JPY tested

Once again USD/JPY finds itself testing the rising trendline off the November low. It held this last week, but a close below it would be a bearish signal.

A further decline below ¥110.11, the key low of March, would suggest that a move to ¥107.45 and then ¥105.53 is in the offing. Bulls need to break ¥111.58 to create a new higher high and thus provide the potential for a move higher in the longer term.

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.