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

Dollar weakness continues to be the rule, with USD/JPY under pressure once again.

Euro and dollar
Source: Bloomberg

EUR/USD in a comfortable uptrend

Weakness for EUR/USD is short-lived, as the push above $1.17 is confirmed. The near-term areas to watch are $1.1650 and then $1.1616, with no end in sight to the ‘buy on the dips’ approach here.

A close below $1.1470 is needed to put a dent in the overwhelming uptrend here.

GBP/USD holding on to $1.31

GBP/USD continues to cling on to $1.31, with the recovery back above $1.30 suggesting that further gains are likely and may result in a challenge of the $1.34 area, not seen since September last year.

The rising 100-day simple moving average (SMA), currently at $1.2786, would provide a good test of the trend, with a bounce off this level, as we saw in June, providing a potentially more attractive buying opportunity. 

USD/JPY remains bearish

Hopes of a turnaround for USD/JPY were dashed last week, with a push to the 200-day SMA (¥112.18) bringing out the sellers.

A drop below ¥110 would then raise the prospect of a dip to ¥109 and ¥108. A close above the 200-day SMA is needed to negate the bearish view.  

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.