FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Both EUR/USD and GBP/USD rallies look to be under pressure. However, USD/JPY is expected to turn lower despite this current move higher.
EUR/USD falls back within consolidation phase
EUR/USD has failed to really take advantage of yesterday’s break higher, with the pair moving back into the $1.1255 support level overnight.
This could be a precursor to further gains, with a break below that $1.1255 support level required to negate the bullish outlook currently in play. Alternately, a rally through $1.1284 would provide a renewed bullish signal.
GBP/USD rally fails to hold
Overnight gains for GBP/USD are looking at risk of being reversed, with the pair looking likely to post a bearish engulfing pattern. This pair is hugely reliant upon today's EU27 meeting for guidance, with a failure to provide an extension to Article 50 likely to drive substantial downside for the pound.
However, in all likeliness we will see an extension granted, taking much of the near-term risk off the table. That should be good for the pound. Thus, while we could see short-term weakness, it looks likely that we will see the bulls come into play before long. A break below the $1.298 region would be required to bring about a wider bearish picture.
USD/JPY grinds higher, yet further losses seem likely
USD/JPY is gradually regaining ground after the sharp decline seen yesterday.
That break below ¥111.21 added greater confidence to the bearish story, with the current rally expected to be a short-term retracement. As such, this rise looks like a selling opportunity, with a rally through ¥111.60 required to negate the bearish outlook.
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.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.