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

Gains have continued for the euro and sterling, while USD/JPY has also moved upwards.

EUR/USD
Source: Bloomberg

EUR/USD rallies through resistance

The EUR/USD pair mounted an impressive bounce above trendline resistance, and while it then retraced to the line, it posted a classic bounce.

Dip buyers came in around $1.14, suggesting that we have seen a bullish move develop. Further gains target $1.15 and then $1.1554. Higher lows have been put in place over the past week, so dips towards $1.14 may continue to find buyers.

GBP/USD finds further strength

Brexit optimism and a weaker dollar continues to support GBP/USD.

An early dip to $1.31 found buyers, and further gains target yesterday’s highs around $1.3175. So far dips have been bought, so a move back below $1.305 is needed to reverse the broadly bullish outlook.

USD/JPY gains continue

The uptrend from the lows of last week continues, with the price of USD/JPY clocking up a higher high in the process on the hourly chart.

The next target is now ¥114.50, the highs from early October. Dips towards ¥113.00 may well find buyers.

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