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 and USD/JPY

EUR/USD and GBP/USD are drifting lower, yet could easily turn higher once more given the recent rising channel in play. Meanwhile, the bearish USD/JPY picture is finally starting to bear fruit.

IG Analyst

Publication date : 2018-06-08T09:40:37+0100

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EUR/USD channeling higher towards 76.4%

EUR/USD has been gaining ground nicely this week, as the pair moves towards the deepest retracement of 76.4%. This period of upside was expected, yet the difficulty is in knowing whether we are retracing the short-term move of $1.1996-$1.1509 or the wider move from $1.2556. A break above $1.1996 would signal that wider move.

For now, there is a good chance of seeing another move higher before long, with a push into the 76.4% level expected. A break below $1.1652 would provide a bearish outlook. Until then, further upside seems likely in order to continue the short-term rising channel.

EUR/USD price chart

EUR/USD price chart

EUR/USD price chart

GBP/USD likely to turn higher once again

GBP/USD has similarly been channeling higher this week, with the price turning lower from the 61.8% retracement yesterday.

As the price moves into trendline support, there is a good chance we will turn higher from here. A break below $1.3371 would bring the wider bearish outlook back into play.

GBP/USD price chart

GBP/USD price chart

GBP/USD price chart

USD/JPY selling off after 61.8% retracement

USD/JPY is turning lower as expected, with the bearish outlook bearing fruit as we head into the close of the week. The previous break below ¥108.65, coupled with a tightening rising wedge formation, points towards a likely breakdown.

Now that we have seen the price fall below the ¥109.47 swing low, that bearish bias is likely to gather steam. With that in mind, bearish positions are favoured, with any short-term upside seen as an opportunity to get short at a more advantageous level. A break above the ¥110.27 mark would negate this view.

USD/JPY price chart

USD/JPY price chart

USD/JPY price chart

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