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

EUR/USD is trading just below key resistance, as GBP/USD rebounds from key support. Meanwhile, USD/JPY attempts to build on long-term breakout.

Euro and pound
Source: Bloomberg

EUR/USD hesitates below crucial trendline resistance

EUR/USD is gradually drifting lower from trendline resistance once again this morning, as we wait for the answer to whether this long-term resistance will be broken.

Given the shallow slant to this weakness, it points towards a good possibility of breaking higher. A break through $1.1450 (bullish) or below $1.1312 (bearish) will determine our view from here.

GBP/USD rebounding from trendline

GBP/USD is once more attempting to break higher from trendline support, following a consolidation at the beginning of the week. A break through $1.2908 would point towards a potential move back into trendline resistance.

Ultimately, this whole move lower is expected to be a retracement of the rally from $1.2588 and as such a bullish view is expected to come back into play at some point. For now, we would need a break through $1.2984 to bring back the bullish outlook. Until then, there is a good chance a rally back into trendline resistance could be sold into once more. 

USD/JPY breaks to four-month high

USD/JPY has managed to break through the ¥114.37 resistance this morning, pushing the pair into a four-month high. The break through ¥114.37 points towards a wider recovery for the pair. However, for now the question is whether today’s breakout will be sustained and built upon. We are seeing the price come back into support, and thus it makes sense to see if we can mount another leg higher to lessen the likelihood of a fakeout.

On the flipside, a break back below ¥113.99 would provide a bearish signal.

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