CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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

The dollar sell-off looks likely to continue, with EUR/USD hitting a three-year high, and USD/JPY breaking into a 15-month low. Meanwhile, EUR/GBP is showing signs of a bearish reversal after a rally into key resistance.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

EUR/USD pulls back after rally into key resistance

Following another leg higher yesterday, EUR/USD is drifting lower, with the price having hit a three-year high with the temporary break above $1.2538.

The ability to break back above that level is going to be key to today’s trade. Alternately, a drop back below $1.2454 would bring a more bearish outlook.

EUR/GBP shows signs of potential bearish reversal

After a brief foray above the key £0.8910 resistance on Wednesday, EUR/GBP has finally started to turn around.

The £0.8857 level is going to be key to where we go from here, with an hourly close below it pointing towards a bearish head and shoulders completion. Conversely, a break above £0.8902 would signal a likely bullish push back through £0.8910.

USD/JPY continues to trade lower

The price has hit a 15-month low today, with USD/JPY continuing its descent.

There is a strong chance we will see a continuation of this move today, with the middle Bollinger band providing good selling opportunities. A break above ¥106.86 would negate this short-term bearish outlook. However, for the most part, a break above the upper Bollinger band would signal that something is shifting in sentiment.

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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.