FX levels to watch: EUR/USD, GBP/USD and AUD/USD
The bulls have returned to GBP/USD, but the yen is on the back foot against the dollar after weaker Japanese PMI data.
EUR/USD back to key support zone
Dips into the $1.125-$1.13 zone continue to find buyers for EUR/USD, as we saw earlier this week.
This area of support continues to hold, but since the beginning of the year rallies have become increasingly short-lived. A descending triangle has formed over the past six months, and we would need to see a break above $1.147 to suggest that this formation has been broken. Alternately, a break below $1.126 would then target $1.1118.
GBP/USD finds more room to rally
Sterling continues to rally, and a move above yesterday’s $1.31 high would open the way to the January peak at $1.32 for GBP/USD.
Last week saw a higher low created, providing a more positive view for the pair. A move back below $1.295 would be the first step in creating a more bearish view.
USD/JPY in tightening range
The USD/JPY pair finds itself in a triangle formation, as rising support from Friday’s lows clashes with resistance from last Thursday’s highs.
We wait for a break either above ¥110.90 or below ¥110.70 to determine the next move.
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.
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
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.