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

Dollar weakness continues to aid the euro and sterling, while USD/JPY seems set for further losses. 

Pounds and dollar
Source: Bloomberg

EUR/USD with support at $1.1384

So far this week $1.1384 has acted as support for EUR/USD, preventing further downside, so this is the area the bears need to break, ideally with a close below $1.1366.

An upside move requires a break back above $1.1445, which would give it the strength to test $1.15. 

GBP/USD at risk of a drop to $1.2911

GBP/USD has broken the descending trendline off the highs from late June, but now we could see a retest of these levels and a drop back towards $1.2911, the 50-period simple moving average (SMA) on the four-hour chart.

Longer-term, the price needs to clear $1.3084, which has been a hurdle before, in May. A move below $1.2825 is needed to restart the downward trend. 

USD/JPY heading down

The bearish failure to break ¥114.37 earlier in the week continues to set the tone for USD/JPY.

Dips below ¥113 saw buyers, but the inability to move back above ¥113.50 suggests that the next move will be downwards, towards ¥112.75 and lower. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.