Established in 1974 Over 195,000 clients worldwide Over 15,000 markets

FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The dollar loses ground in both GBP/USD and USD/JPY pairs. However, the euro is today’s big loser, with EUR/USD selling off sharply.

Joshua Mahony JMahony_IG
Market Analyst, London

2017-10-16T09:40:22+0100

GBP

Source: Bloomberg

EUR/USD retracement continues apace

EUR/USD has been in retracement mode since topping off at $1.1880 last week. This current sell-off looks like a short-term phenomenon before we move higher once more. As such, keep an eye out for potential Fibonacci support.

The breakout from the current creation of lower highs and lower lows will provide a bullish signal. Until then, further downside looks likely.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD consolidates after resistance break

GBP/USD managed to break through the key $1.3292 swing high on Friday, as it built upon the gains seen in the last week. With the price consolidating around this area, there is a good chance we could see another move higher from here.

That being said, watch out for an hourly close above $1.3338, or below $1.3247 for a greater idea of where this market is heading next.

GBP/USD price chart

GBP/USD price chart

GBP/USD price chart

USD/JPY downside likely to persist

USD/JPY has continued to move lower this morning, following a 61.8% retracement in the early hours. This market looks to have rolled over, so further downside seems likely from here.

Keep an eye out for the most recent swing low of ¥112.05, which if broken, would negate this bearish outlook.

USD/JPY price chart

USD/JPY price chart

USD/JPY price chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Aaran Fronda

London
Chris Beauchamp

London
Jeremy Naylor

London
Jingyi Pan

Singapore
Joshua Mahony

London
Joshua Warner

London
Kyle Rodda

Australia
Nyandabeh Ella Vincent

Chicago
Shaun Murison

Johannesburg
Victoria Scholar

London

Find out more about

Trading forex with IG
Forex CFD details
Learn to trade fx

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.