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.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

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

A pullback in EUR/USD could see buyers enter again, while GBP/USD recovers from yesterday’s CPI reading. 

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.
Yen and dollar
Source: Bloomberg

EUR/USD with a buying opportunity?

A steep overnight pullback in EUR/USD could provide another buying opportunity, with the price heading towards the 50-hour simple moving average (SMA) at $1.1516, and towards the $1.1514 support zone that held during the early part of Tuesday’s session.

A bounce from here might then target the highs of Tuesday at $1.1583. We would need to see a push below $1.1442 on the daily chart to become particularly bearish here.

GBP/USD recovers after poor CPI

GBP/USD has managed to shake off the sudden drop yesterday following the weaker consumer price index (CPI) reading, finding support around $1.30.

If it remains below $1.3048, we could see a fresh test of $1.30 and then down to the 50-day SMA at $1.2878. A move back above $1.3048 would signal that another attempt at $1.31 is underway.

USD/JPY hits SMAs zone

Support yesterday at ¥111.70 was matched by a confluence of the 50-, 100- and 200-day SMAs in the ¥111.70/¥111.80 region, hindering downward progress for USD/JPY.

If the rally off the lows runs out of steam around ¥112, a break below ¥111.70 would clear the way towards ¥110.86 and then to ¥109.

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.