FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Both the euro and the pound have managed to rally, but now find themselves at key resistance. After last week’s dive, USD/JPY is still moving higher but remains in a bearish formation.
EUR/USD returns to top end of range
Yesterday’s rally saw EUR/USD head towards the $1.15 level once again, but this is still providing resistance, as it has since early November.
A close above $1.15 would spark significant upside, targeting $1.1554 and then $1.1623. If the current range holds then the first target is the $1.13 zone of support that has held over the past eight weeks.
GBP/USD back to $1.28
While GBP/USD has rallied hard from the low of last week, the bounce has run into selling around the $1.28 level, as it did at the end of December.
If this holds once again then we can expect the $1.2635 and $1.259 zones to be challenged. A close above $1.281 brings $1.285 and $1.289 into view.
USD/JPY edges higher after recent slump
After last week’s sudden drop, USD/JPY has been pushing slowly higher. Trendline support from the lows of 3 January has underpinned this move.
A reversal back below ¥108.00 would mark a resumption of the downward move. On the upside, the next target is ¥109.60, then ¥109.85 and ¥110.00.
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.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets