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

The trend appears to be back in play as we go into a highly volatile day, with EUR/USD, GBP/USD and USD/JPY looking likely to favour dollar strength.

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.
Euro
Source: Bloomberg

EUR/USD selling off from Fibonacci resistance

EUR/USD is gradually moving back into the bearish mindset that dominates the medium-term outlook. This morning has seen the pair rally into both trendline and Fibonacci (76.4%) resistance, subsequently posting a doji before selling off. With that in mind, further losses seem likely, with a move back down to $1.1053 on the cards.

As such, a bearish short-term view is in play, which corresponds with the medium-term outlook. An hourly close above $1.1100 would be required to negate this bearish view.  

GBP/USD looks set to continue downtrend

IN_GBPUSD has seemingly formed a lower high this morning, following on from a move back into $1.2878 support. The fact that we have seen the pair form a flat rather than rising low highlights the fact that this retracement could be weakening.

With that in mind, a bearish view is in play unless we see a break back above $1.3047. However, for greater confirmation, an hourly close below $1.2878 should provide sufficient confidence that the downtrend is set to continue. 

USD/JPY rally unlikely to last

IN_USDJPY is moving higher this morning, following on from an overnight move lower. On this occasion, we have the confidence that the medium-term bearish outlook now matches up with the short-term view. With that in mind, another leg lower is highly likely as long as price does not break and close (hourly) back above ¥100.97.

Watch out for Fibonacci retracements as good entry points, with the past two pullbacks being capped around the 76.4% and 61.8% levels. 

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.