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

The tides turn, as GBP/USD and EUR/USD gain ground at the expense of the dollar, while USD/JPY begins to move higher.

Euro note and pound
Source: Bloomberg

EUR/USD bounces from crucial support level

EUR/USD managed to rally from the crucial $1.1202 support level yesterday, after a sharp move lower threatened to provide a more bearish signal. An hourly close below that level would provide a short term bearish signal.

Conversely, an hourly close above $1.1285 would signal that the uptrend looks set to continue, negating the fact that we are no longer creating higher lows.

GBP/USD punches higher once more on election day

A massive day for the UK, and in turn the pound is clearly showing its true colours, with continued gains for GBP/USD highlighting an expectation of further gains by this time tomorrow.

The short-term trend is clearly towards the upside, and we would need to see a break through $1.2872 to negate that trend. To the upside watch out for trendline resistance up ahead.

USD/JPY retracing after recent sell-off

USD/JPY is gaining ground following a sharp move lower earlier this week. As things stand, this looks like a short-term phenomenon, with a move into the deeper Fibonacci retracements of 61.8% (¥110.11) and 76.4% (¥110.35) providing interesting areas for shorts.

Essentially, we have the continued creation of lower highs and lower lows, which would be negated by a break through ¥110.73. Until that happens, a bearish outlook remains in play.

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