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

Signs of a bullish reversal for EUR/USD point toward the potential for a recovery in GBP/USD too. With USD/JPY looking bearish, it seems the dollar could come under pressure this week.

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.
US dollar and Japanese yen notes
Source: Bloomberg

EUR/USD rallies through crucial resistance level

EUR/USD is pushing through the $1.0630 resistance level this morning, following on from last week’s pullback into the $1.0494 support level. The fact we matched but failed to break through that support level was telling, providing the potential for a double bottom. That pattern has now been completed, with the pair now looking likely to gain further as the week progresses. 

GBP/USD retracing Friday’s gains

GBP/USD managed to regain some ground on Friday, following a sharp deterioration in the early part of last week. Crucially, we have not broken through the $1.2308 resistance level yet, thus bringing about the chance of further downside.

That said, with EUR/USD breaking higher in such a convincing manner, it may be a matter of time before we see this pair push through $1.2308 too. Should that occur, then we could be looking at a bullish phase for this pair. However, until then, the short-term downtrend remains valid. 

USD/JPY pulling back from deep retracement

USD/JPY is selling off sharply following Friday’s top, which saw yet another very deep retracement, rallying through the 76.4% pullback. However, with price falling short of the ¥114.96 level, there is a good chance we will see a fairly prolonged period of weakness at the beginning of the week.

With that in mind, watch out for further downside. As the price failed to break below ¥111.60 last week, there is a potential for a wider bullish reversal in play, which would point towards this sell-off perhaps failing to break back below ¥111.69.

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.