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.

FX levels to watch – EUR/USD, GBP/USD and USD/JPY

EUR/USD and GBP/USD are both pushing higher yet again today, with rising channel formations continuing to dominate. Meanwhile, overnight gains in USD/JPY look to provide us with a good shorting opportunity.

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.

EUR/USD pushing higher within channel

EUR/USD continues to respect an ascending channel formation as we move into the new week, with the price heading towards the 76.4% retracement yet again.

The ascent we have been seeing so far throughout June could prove to be a retracement of the decline from $1.1996, thus highlighting the importance of the 76.4% retracement ($1.1881) as the next major point of resistance. A break above that $1.1881-$1.1996 region would point towards a wider retracement into the $1.2150 area. Until then, the rising channel continues to provide a bullish outlook, unless we fall below $1.1727.

GBP/USD turning higher once again

GBP/USD is also continuing its retracement of the May decline, with the price back into the 61.8% level that was closely respected last week.

This points towards a potential move into the 76.4% retracement at $1.3520, where a break back below $1.3354 would be required to signify a more bearish outlook.

USD/JPY rebound unlikely to last

USD/JPY has managed to rebound at the start this new week, as the pair attempts to break out of the bearish shift seen on Friday. However, that break below ¥109.47 points towards this current rebound being a likely retracement before we turn lower once again.

With that in mind, a bearish outlook is in play, with the price expected to respect the 76.4% retracement for a move lower. That deep retracement means we have a good risk-to-reward opportunity from current levels. A break above ¥110.27 would point to a shift towards a more bullish outlook.

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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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