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

Dollar strength continues to be felt, weighing heavily on EUR/USD and GBP/USD.

EUR/USD with bearish momentum

Further declines for EUR/USD will see the $1.17 and $1.1754 areas tested.

The loss of the 200-day simple moving average (SMA) of $1.2020 signals a further bearish shift, and any rebound that fails to move back above $1.2165 would likely represent a selling opportunity.

GBP/USD price continuing to drop

Looking at GBP/USD, there seems little to hold up sterling this week ahead of the Bank of England (BoE) meeting.

The price continues on its downward trajectory, and the loss of the 200-day SMA at $1.3544 would see the $1.3321 level come into play. A move back above $1.37 is needed to put a more bullish view on the pair.

USD/JPY could see a bounce to ¥110.00

The price for USD/JPY has fallen back to the rising trendline from the March lows.

If this holds then a bounce to ¥110.00 cannot be ruled out. A close below the trendline would target ¥108.13 and then ¥107.50.

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.