FX levels to watch: EUR/USD, GBP/USD and USD/JPY
After some weakness over the weekend, FX markets are showing signs of reviving risk appetite, which may continue now that the US is back from its holiday.
EUR/USD back to channel support
EUR/USD’s fall has continued, but it is now nearing the bottom-end of the rising channel. If a bounce from around these levels takes place, a higher low in the uptrend from November lows has been created.
This might suggest a move back towards the top-end of the channel, around $1.157. A break below $1.132 would mark a significant change, putting the sellers back in control.
GBP/USD recovers from recent weakness
GBP/USD's overall upward trend from the lows of December continues, although it received a sharp check on Friday. However, the price continues to hold the 200-hour simple moving average (SMA) of $1.285, having bounced back above it yesterday.
This dip may see fresh buying, targeting $1.30 in the near term. A more bearish view could develop, but it would require a close below $1.28.
Dip in USD/JPY uptrend provides bulls with an opening
As with equities, USD/JPY's bounce has stalled over the past couple of sessions, but the uptrend is still in place.
The pullback from Friday highs has been met with buying so far this morning, with the price finding support around ¥109.35. If a higher low is created here, then the price moves back towards ¥110.00. A bigger retracement targets the ¥108.80 area and rising trendline support from the 10 January low.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only