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

After some post-FOMC strength, the US dollar is under pressure.

British pound Source: Bloomberg

EUR/USD rebounds in early trading

Having dropped sharply in the wake of the Fed decision, EUR/USD has promptly recovered all its losses and is making another attempt to clear $1.14 and hold above the 50-day simple moving average (SMA) of $1.1389.

Near-term targets to the upside are $1.1470, $1.15 and then $1.1554. The pair has built a firm base around $1.13, so above this level dips should continue to be bought.

EUR/USD chart

EUR/USD chart

GBP/USD looks to break higher

Having been knocked back yesterday, GBP/USD is breaking higher and testing the descending trendline from the November highs.

Above $1.27, the price will head to $1.28 and then on to $1.29. Dips towards $1.26 may prove to be fresh buying opportunities.

GBP/USD chart

GBP/USD chart

USD/JPY hits fresh lows

USD/JPY has broken below the ¥112.20 support area, and while a rebound from intraday oversold levels is possible, it looks like this will be another selling opportunity.

Downside targets now lie at ¥111.40 and then the 200-day SMA at ¥110.87.

USD/JPY chart

USD/JPY chart


IGA, may distribute information/research produced by its respective foreign affiliates 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.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.