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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, GBP/USD, USD/JPY

A big day for EUR/USD, as the European Central Bank announces its latest decision. Meanwhile, dollar weakness seems to be helping to push USD/JPY lower. 

pound sterling and dollar
Source: Bloomberg

EUR/USD continues to tip higher

EUR/USD has tiptoed higher all week, which is not surprising given that today’s European Central Bank (ECB) meeting could be a big one. The pair has clung to the 50-period simple moving average (SMA) on the four-hour chart ($1.1924), but hesitancy ahead of Mario Draghi’s appearance means that the $1.1976 and $1.2040 levels remain unchallenged so far.

A push higher would target these two areas, while it will take a move below $1.1823 to put a more bearish dimension on the price action.

GBP/USD rallies well

GBP/USD has reassembled strongly from $1.28, with dip buyers seizing the chance on the daily chart, given that momentum was so heavily oversold.

Key area of resistance is $1.3050, with a breakout above here likely to open the way to $1.32. A failure to push higher would suggest that a return to support at $1.2811 is in the offing.

USD/JPY starts to fall lower again

After a rally from ¥108.50, USD/JPY (大口) has begun to turn lower once more, with the potential for a push below ¥108.50 that will then put the ¥108 level itself under pressure.

Having pushed steadily lower since July, the price will need to break above ¥110.50 to create a new higher high, and reverse the negative outlook. 

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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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