FX levels to watch: EUR/USD, GBP/USD and USD/JPY
Brexit developments have bolstered GBP/USD, while EUR/USD continues to make small gains.
EUR/USD builds on gains
Signs of a recovery remain in evidence here for EUR/USD, as the price continues its rally off the $1.13 level.
Now it targets the 50- and 100-day simple moving averages (SMA) at $1.1389 and $1.1395 respectively, while additional gains head towards trendline resistance from the January highs, which would come into play around $1.144.
GBP/USD leaps once more
News of political developments in both the government and opposition camps, relating to no-deal and a second referendum, was enough to push GBP/USD higher late yesterday.
Now the pair targets $1.32, the highs from late January. Dips towards $1.305 may well find buyers, and a close below $1.304 would provide a more bearish view, at least in the short-term. However, for the moment the buyers are in control, and the progression of higher lows and higher highs is expected to continue.
USD/JPY steadies after retracement
The sharp rally yesterday was knocked back for USD/JPY, but the retreat overnight has created a higher low, and has seen bullish momentum develop.
Fresh gains target ¥111.20, the high from Monday, and then on towards ¥111.65. The past week saw a staunch defense of ¥110.50, so a close below this would produce a more bearish view.
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.