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

A potential breakthrough in Brexit talks has bolstered sterling, while USD/JPY has steadied after a drop overnight.

EUR/USD downtrend intact

Short-term support for EUR/USD has been found around $1.13, coinciding with a decent bounce from intraday oversold conditions.

However, for the moment this merely looks like a lower high within the current downtrend. A turn lower from below $1.1146 would mark another potential selling opportunity, and would see the $1.13 area tested again. A bounce above $1.14 would open the way to $1.145 and then $1.155.

GBP/USD surges on Brexit news

News of a deal between the EU and the UK over financial services has bolstered GBP/USD, with the pair recovering ground lost over the past week.

We may have a change of short-term trend here, although it will be important to watch how the price behaves around intraday pullbacks. Further upside would target $1.2926 and then $1.303.

USD/JPY recovers from mid-week sell-off

We saw some weakness for USD/JPY yesterday but the overall push higher remains intact.

The pullback from ¥113.40 may see further buyers enter, continuing the sequence of higher lows. A move back below ¥112.50 would put a more bearish view on things, potentially targeting ¥111.50.

Live #IGForexChat

Put your question to the experts during our live IG Forex Chat.
Streaming on 1 November at 6.30pm (UK time).

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