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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

An impending BoE decision has helped GBP/USD to slow its decline, but USD/JPY has rallied once more.

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EUR/USD could see small rebound

EUR/USD has finally managed to slow the decline, fighting to hold the $1.18 level.

We need to see a move back above $1.19 to further suggest that a small rebound is in play, bringing $1.1915, the 200-day simple moving average (SMA) at $1.2020 and then $1.2092 into view. Below $1.18, the $1.17 low comes into view.

GBP/USD on hold for now

Rallies towards $1.36 have brought out the sellers for GBP/USD, while dips below $1.35 have found buyers.

Unsurprisingly, with a Bank of England (BoE) decision looming, the pair has moved into consolidation. A break above one of the two aforementioned levels is needed to determine the next direction.

USD/JPY targeting move higher

The upward trend has resumed here, with USD/JPY bouncing off the rising trendline from the March lows.

Next in sight is ¥110.00, with a close above here targeting ¥110.48 and then ¥110.84. A break below ¥108.84 is needed to put a more bearish outlook on the pair.

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.

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