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.
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.