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

The dollar has started showing some signs of a resurgence, while EUR/GBP looks likely to turn lower, following a rally into the top of a channel.

Source: Bloomberg

EUR/USD retraces towards crucial support level

EUR/USD has sold off sharply overnight, with the price moving towards the crucial $1.2195 support level.

An hourly close below that support level would provide a bearish shift for the pair, looking likely to begin retracing the wider $1.1915-$1.2323 move. Until the price falls below $1.2195, then the bullish short-term trend remains in play. 

EUR/GBP shows potential for bearish shift

EUR/GBP is consolidating within a symmetrical triangle formation, following a rally into the top end of a three-month descending channel.

This points towards the potential for another bearish shift for the pair, where an hourly close below £0.8855 would signal a likely beginning of a more bearish phase. 

USD/JPY rallies against downtrend

USD/JPY has pushed higher overnight, with the pair moving against the clear downtrend seen throughout 2018 thus far.

The ability to break through ¥110.98 will be key in determining whether this trend is about to reverse. Until then, there is a strong chance we could start to see the sellers come back into play, with the 76.4% retracement pointing towards a strong risk-to-reward profile associated with shorts. 

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 IG 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.

Find articles by writer

Find out more about