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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

The dollar comes under further pressure in both USD/JPY and GBP/USD pairs. Conversely, EUR/USD is moving gradually lower from a triangle pattern.

EUR/USD notes
Source: Bloomberg

EUR/USD breaking lower from triangle pattern

EUR/USD has broken through trendline support this morning, following a failure to create a new high overnight. This could be a bearish short-term sign if it is followed up by an hourly close below $1.1234.

As such, watch out for a bearish short-term signal with an hourly close below $1.1234, while an hourly close above $1.1285 would provide a bullish continuation signal. 

GBP/USD pushes towards Fib resistance

GBP/USD has continued its ascent, with the price moving into the 76.4% resistance around $1.2957. Given the wider downtrend in play, there is a good potential for this Fibonacci level to mark the end of this recent retracement.

Of course, we have the election later this week so it will be a volatile time, but given the wider downtrend we would need a break through $1.3015 to undermine it and point towards further gains.

USD/JPY tumbles once more

USD/JPY moved sharply lower overnight as the risk aversion ahead of Thursday’s upcoming events pushes money into the yen.

Given how extended things are to the downside, it makes sense to wait for the formation of a continuation pattern or retracement. However, further downside does look likely before long.

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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