Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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

EUR/USD and GBP/USD have been breaking higher after yesterday’s BoE meeting. However, the dollar looks set to strengthen against the yen, with USD/JPY turning higher once more. 

Video poster image

EUR/USD rebounds from key support zone

EUR/USD is breaking higher from the $1.1510 support level yet again, with yesterday’s Bank of England (BoE) meeting helping drive European FX higher.

The break through $1.1644 provides a bullish short-term view, with questions raised over whether we are seeing a retracement or bottom for the pair. Key to this is the fact that we have seen flat-lining bottoms, given the failure to break to a new low yesterday. With the price breaking above $1.1644, it looks likely that we will head higher, with the 61.8% and $1.1727 level being the first zone of resistance. A break through $1.1852 would signal a wider recovery phase for the pair. Until then, there is a chance this will be a retracement within a wider bearish downtrend.

GBP/USD breaking higher, yet downtrend remains

GBP/USD has also been gaining ground off the back of yesterday’s BoE meeting, with the price rallying into the $1.3301 resistance level this morning.

Given the downtrend in place, there is a chance we could see another turn lower before long. However, regardless of whether we see this as the beginning of a wider rally or not, the near-term picture points towards further short-term gains if we break $1.3301. A rally through $1.3472 would be required to negate the wider downtrend in place.

USD/JPY turning higher from Fibonacci and trendline support

USD/JPY is turning higher yet again this morning, following on from a sharp move lower yesterday.

The trend seen throughout June has provided us with higher highs and higher lows, which would be negated in the event that the price breaks below ¥109.55. Until then, there is a good chance we will see further upside to come for the pair.  

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