CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD and GBP/USD hit Fibonacci resistance, as USD/JPY heads lower

Dollar weakness brings EUR/USD, GBP/USD and USD/JPY into key levels. The ability to hold or break those levels will be crucial in determining where we go in the days ahead.

EUR/USD rallies into Fibonacci resistance

EUR/USD has continued Friday's gains this morning, with the pair rising into the 76.4% Fibonacci retracement level at $1.0856.

This is the first overbought signal we have seen in the stochastic for two weeks, and that is unlikely to last. Given the current respect at that resistance level, a bearish reversal looks likely from here, with a break through $1.0896 required to negate this bearish outlook.

GBP/USD likely to roll over after early gains

GBP/USD has similarly managed to surge into the 76.4% Fibonacci resistance level at $1.2457.

That signals a likely bearish reversal coming into play from here, with a break through $1.2522 required to bring about a heightened chance of continued bullish price action. Until then, this looks like a good opportunity to look for the bears to come back into play.

USD/JPY heads into key support

USD/JPY has broken from its consolidation this morning, with the price heading into the key ¥106.92 support level.

That looks likely to be the most important level to watch today, with a break below providing a renewed bearish outlook. Given the respect seen over the last month, there is no given that this will be broken. As such, the reaction to this level should guide us as we move forward into the week.

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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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