Skip to content

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

With EUR/USD and GBP/USD falling, amid a resurgence in USD/JPY, it seems the dollar is coming back in vogue.

GBP/USD figures
Source: Bloomberg

EUR/USD drifts towards key support

EUR/USD continues to move lower, as it approaches the crucial $1.1109 support level. The break below there would provide a bearish picture for the short term. However, given that we are trading within a falling wedge, there is a good chance that we will see a break higher soon enough.

Ultimately it seems to be a case of which will come first, a break below $1.1109 would point towards any bounce, but is as likely a precursor to further downside.

GBP/USD looks set for next leg lower

Consolidation in GBP/USD didn’t last long overnight, with the price faltering after a rally into the previous support level of $1.2635. We are now seeing cable push lower once more, which is likely to provide further losses for this currency pair.

As long as the overnight high of $1.2635 remains intact, it looks like we will head lower towards the 76.4% retracement support at $1.2527.

USD/JPY expected to turn higher once more

USD/JPY managed to fleetingly break through the crucial resistance level of ¥111.71 overnight, following a strong surge higher over recent days. While we are moving lower this morning, we would need to see ¥110.64 breached if we are to look for a deeper pullback.

With that in mind, look out for support around 61.8-76.4% (¥111.08- ¥110.94), as a potential area where this pair could turn higher from. A break below ¥110.64 would point towards a retracement of the wider ¥108.82- ¥111.79 rally. 

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.

Find articles by writer