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

The euro looks set for further losses, while sterling is attempting to continue its rebound from Friday’s lows.

Source: Bloomberg

EUR/USD turns lower again

A fresh low for EUR/USD on Friday confirms the downtrend, and the subsequent rally appears to be running out of steam at $1.1750.

Further losses that break the Friday low will then challenge the key $1.1662 level. If this goes, then the $1.15 area comes into play. A move above $1.18 is needed to provide indications that further gains are on the way.

GBP/USD tries for a bounce

Sterling bulls will be hoping that the bounce off the lows on Friday for GBP/USD marks the end of the pullback from the $1.36 September highs.

However, for this to materialise we will need a close above the 50-day simple moving average (SMA) at $1.3135, which will create a new higher high, above the $1.3290 seen early last week. A move through Friday’s $1.3027 low would then leave the pair targeting the rising trendline off the March lows. 

USD/JPY falls away from ¥113

Friday’s spike and then swift reversal from ¥113.00 would seem to suggest that the dollar bears are back in control, although the ¥112.30 zone has provided good intermediate support for USD/JPY over the past two weeks.

Below this, ¥111.46 and then ¥111.07 come into play as downside targets. A close above ¥113.50 is needed to put a more bullish outlook on the situation.

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.