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

EUR/USD is attempting to break free of the dollar strength story, while GBP/USD and USD/JPY are likely to see the greenback regain dominance.

EUR/USD showing signs of potential bullish resurgence

EUR/USD managed to break its trend of lower highs and lower lows today, with a break through the $1.131 high from Thursday. This is a tentative sign of strength, set within a period of weakness that has take us below the crucial $1.129 support level. That points towards further downside to come, yet there is still a chance we could rebound to provide a wider retracement of the sell-off from $1.1514.

A failure to break below Friday’s low of $1.1234, followed by a break through today's peak of $1.1325, would signal a potential recovery phase coming into play. However, until that happens we remain within a bearish trend that could dominate once again.

GBP/USD rally looking at risk of bearish turn

GBP/USD has been on the rise over the past two days, with the pair moving into the 76.4% retracement at $1.2915.

The downtrend in play over the past three weeks points towards a likely bearish turn from here, with a rally through the $1.2959 swing high required to bring about a more bullish short-term view. Until then, a bearish outlook remains in play.

USD/JPY grinding higher after downturn

USD/JPY has been moving gradually higher after a period of weakness on Thursday.

The uptrend in place throughout 2019 to date points towards another move higher, with a break below ¥109.55 required to negate the bullish trend. Whether or not we break back into the deeper Fibonacci retracements remains to be seen, although another surge higher does look likely before long.

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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.