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

Recent dollar strength has knocked back the longer-term rallies in EUR/USD and GBP/USD, but the broader uptrend is intact.

EUR/USD aims for a rebound

The modest pullback in this trend for EUR/USD last week stands in stark contrast to the volatility in indices. Still, we saw the price give up most of its gains of late January.

Thursday and Friday saw buyers enter to defend the $1.22 zone, but gains towards $1.23 found sellers. Above $1.23, the $1.2323 and then $1.25 areas come into play, if the uptrend reasserts itself. Meanwhile, further declines will test $1.2165 and then $1.2092.

GBP/USD retracement continues

There was a sharp reversal last week for GBP/USD, but the broader uptrend is intact.

The next support to watch out for would be the $1.3659 area, with the 50-day simple moving average (SMA) at $1.3679 just above this. Below this, the March 2017 line comes into play. It would need a move below $1.33 to put a real dent in the current uptrend.

USD/JPY stabilises after falls

USD/JPY bounced off the ¥108.13 level, although the downtrend from the recent highs persists.

Further gains would move towards the ¥110.70 zone, while a close below ¥108.13 would open the way to the ¥107.30 level.

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