FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The euro is still trying to push on after its breakout at the beginning of the week, while sterling is in full reverse. Meanwhile, USD/JPY is looking to push through ¥110 to complete the possible bottoming pattern.
EUR/USD trying to break higher
Gains this week have faltered at $1.125 for EUR/USD, but a sharp dip yesterday found support at $1.118.
If the price can continue to hold $1.12 then it may be able to push back towards $1.126. The continued breakout from trendline resistance would support the bullish thesis, so a close back below $1.117 would negate the more optimistic view.
GBP/USD still in bearish mode
The GBP/USD pair continues to decline, heading towards $1.2773 support.
The drop below the late April support around $1.286 would confirm the bearish view, and intraday rallies should continue to find sellers until we see a move back above $1.2925, the previous lower high.
USD/JPY holds ¥109
Support continues to hold around ¥109.00 for USD/JPY, but rallies towards ¥109.70 have met a wall of resistance.
If the price can move above ¥110.00 then a more bullish view would start to emerge. The consolidation idea remains in place so long as the price holds ¥109.00, but a decline below this would target previous lows at ¥108.50 and ¥107.70.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
