FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The bulls have returned to GBP/USD, but the yen is on the back foot against the dollar after weaker Japanese PMI data.
EUR/USD back to key support zone
Dips into the $1.125-$1.13 zone continue to find buyers for EUR/USD, as we saw earlier this week.
This area of support continues to hold, but since the beginning of the year rallies have become increasingly short-lived. A descending triangle has formed over the past six months, and we would need to see a break above $1.147 to suggest that this formation has been broken. Alternately, a break below $1.126 would then target $1.1118.
GBP/USD finds more room to rally
Sterling continues to rally, and a move above yesterday’s $1.31 high would open the way to the January peak at $1.32 for GBP/USD.
Last week saw a higher low created, providing a more positive view for the pair. A move back below $1.295 would be the first step in creating a more bearish view.
USD/JPY in tightening range
The USD/JPY pair finds itself in a triangle formation, as rising support from Friday’s lows clashes with resistance from last Thursday’s highs.
We wait for a break either above ¥110.90 or below ¥110.70 to determine the next move.
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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.