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 – GBP/USD, EUR/USD, USD/JPY

Fed minutes prompted a reversal in the dollar, which has interesting implications across the FX space. 

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.
USD/JPY notes
Source: Bloomberg

GBP/USD lifted by the FOMC minutes

The services PMI number and dollar weakness after the Federal Open Market Committee (FOMC) minutes helped to push GBP/USD back to $1.25.

However, the price now needs to push through the descending hourly trendline off the highs from late March, which would imply a move back above $1.2520. Areas of short-term support are $1.2450 and then $1.2420, with the former a potential mark to watch for a bounce, given the rising trendline that comes into play from the 14 March low. 

EUR/USD getting ready to go up

A staunch defence of the $1.0635 level and renewed USD weakness lends credence to the idea that the euro is poised for a move higher.

A break above the $1.07 high from 31 March clears the way to $1.0750 and then $1.0780. On the daily chart, EUR/USD now needs to clear the 200-day simple moving average (SMA) at $1.0863, and then move on through the late March high of $1.09.

USD/JPY looking bearish  

Further losses look likely for USD/JPY, after a reversal yesterday that left the pair close to key support at ¥110.11. Below this is the 200-day SMA (¥108.54), while downside targets from there would be ¥107.45 and then ¥105.53.

For now the pair is oversold intraday, so a bounce is possible, but as long as it remains below ¥111.50, the bearish outlook is preserved. A close above ¥111.50 would be needed to reverse the expectation of further losses.

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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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