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, GBP/USD, USD/JPY

US dollar strength yesterday appears to be receding, leading to the possibility of further downside for USD/JPY. 

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 notes
Source: Bloomberg

EUR/USD – rally extension towards $1.12?

EUR/USD retracement ran for most of Thursday’s session, but once again buyers came in to defend the $1.1080 level, as they did a day earlier.

The bounce off this level continues to suggest an extension of the rally, towards $1.12 and higher, but it needs to clear the $1.1180 high from Tuesday/Wednesday, to avoid creating a lower high. A drop through $1.1080 would be a bearish development, but the loss of $1.10 would be the real bearish catalyst.

GBP/USD support still lies at $1.2850

It was a volatile day for GBP/USD yesterday, as it spiked up to $1.3040 before slumping towards $1.29. Nonetheless, with a recovery back above $1.2980 it looks like the buyers are in charge again.

They still need a push above $1.30 to clear the way to fresh monthly highs in the direction of $1.34. As earlier in the week, support still lies at $1.2850. 

USD/JPY tests resistance at ¥111.68

USD/JPY dropped down towards support at ¥110, before bouncing back to test resistance (previous key support) at ¥111.68.

If this is not broken, then it looks like the sellers are in control, and we would look for another push to ¥110. But if this is broken, then on towards ¥108. 

This information has been prepared by IG, a trading name of IG 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. 

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.