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

The euro is moving higher this morning, while the pound has gained little from the PM’s victory in the no confidence ballot.

Source: Bloomberg

EUR/USD challenges trendline resistance

Rallies for EUR/USD continue to be capped by trendline resistance from the October highs, with yesterday’s bounce faltering below this level.

However, the pair is challenging this level this morning, so this is one to watch. Above $1.14 we may see a rapid break higher towards $1.1554. Meanwhile the sellers will need to push the price below $1.13 to suggest support has been broken.

Brexit uncertainty weighs on GBP/USD

Last night’s win by UK Prime Minister Theresa May was already priced in, GBP/USD having moved smartly off the lows during the day.

But having broken sharply lower earlier in the week the pair has now created a lower low and a lower high. Any rally that pushes back to $1.27 may be another selling opportunity, and it would require a recovery above $1.28 to put a more bullish view on the currency pair.

USD/JPY maintains upward momentum

The bounce off the 100-day simple moving average (SMA) is intact, and with a positive crossover looming on the daily moving average convergence divergence (MACD) the bulls could see further upside from here for USD/JPY.

Trendline resistance comes in around ¥113.89, with a break higher from here ending the sequence of lower highs seen since the beginning of October.

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