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

Powell’s speech yesterday has been the catalyst for some interesting moves across the FX space.

EUR/USD given a boost by falling US dollar

The weakening of the US dollar has prompted a sharp rebound in EUR/USD, and the price is now testing the area above the Monday high of $1.138.

Further gains target the $1.147 area that was strong resistance earlier in the month. Some retracement of the sharp move higher might provide a fresh buying opportunity, but it needs a move back below $1.126 to suggest that a more bearish outlook prevails.

GBP/USD rallies on Powell speech

While cable bounced following the Federal Reserve (Fed) chair Jerome Powell speech, it has failed to create a new higher high for GBP/USD, stuck at $1.285.

We may see fresh selling pressure emerge. A move above $1.29 is needed to put a more bullish view on the pair.

USD/JPY gives back gains

After falling sharply, USD/JPY may try to rebound, but it will need to recover ¥113.60 otherwise a more bearish view begins to emerge.

Below ¥113.20 the price heads towards ¥112.40.

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