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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, EUR/GBP and USD/JPY

The dollar has started showing some signs of a resurgence, while EUR/GBP looks likely to turn lower, following a rally into the top of a channel.

EUR
Source: Bloomberg

EUR/USD retraces towards crucial support level

EUR/USD has sold off sharply overnight, with the price moving towards the crucial $1.2195 support level.

An hourly close below that support level would provide a bearish shift for the pair, looking likely to begin retracing the wider $1.1915-$1.2323 move. Until the price falls below $1.2195, then the bullish short-term trend remains in play. 

EUR/GBP shows potential for bearish shift

EUR/GBP is consolidating within a symmetrical triangle formation, following a rally into the top end of a three-month descending channel.

This points towards the potential for another bearish shift for the pair, where an hourly close below £0.8855 would signal a likely beginning of a more bearish phase. 

USD/JPY rallies against downtrend

USD/JPY has pushed higher overnight, with the pair moving against the clear downtrend seen throughout 2018 thus far.

The ability to break through ¥110.98 will be key in determining whether this trend is about to reverse. Until then, there is a strong chance we could start to see the sellers come back into play, with the 76.4% retracement pointing towards a strong risk-to-reward profile associated with shorts. 

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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