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

The US dollar continues to gain the upper hand in the FX sphere, ahead of the Fed meeting this week.

Euro and dollar notes
Source: Bloomberg

EUR/USD - a bearish development on the way?

It doesn’t seem like there is an abundance of positive momentum in EUR/USD at present. The pair has been treading water for around a month now, with the upward momentum of April and May fizzling out.

As noted yesterday, a move below $1.1109 is the really bearish development, so we will watch today if a bounce can materialise to keep the price off the lows of last week around $1.1172. 

GBP/USD awaiting UK data this week

The drop through $1.2706 is the bearish development that we had been expecting. While UK data this week could rescue GBP/USD, the next area of support to watch would be the $1.2616 area.

A drop below here would raise the prospect of a move down towards $1.24 in the longer term. Bulls need a move back above $1.2775 to indicate that they have managed to wrest back control.

USD/JPY awaiting Fed meeting

There has been a notable recovery in USD/JPY over the past few days, with the possibility that a further rally will recover ¥110.56, the 200-day simple moving average (SMA). Above this, the late May high at ¥111.78 comes into play.

Much will likely depend on the Federal Reserve (Fed) meeting, but those looking for an extension of the 2017 downtrend in USD/JPY will want to see ¥109.50 lost as a prelude to a move back to ¥108.

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.