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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, EUR/GBP and USD/JPY

The dollar sell-off looks likely to continue, with EUR/USD hitting a three-year high, and USD/JPY breaking into a 15-month low. Meanwhile, EUR/GBP is showing signs of a bearish reversal after a rally into key resistance.

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EUR/USD pulls back after rally into key resistance

Following another leg higher yesterday, EUR/USD is drifting lower, with the price having hit a three-year high with the temporary break above $1.2538.

The ability to break back above that level is going to be key to today’s trade. Alternately, a drop back below $1.2454 would bring a more bearish outlook.

EUR/USD chart

EUR/GBP shows signs of potential bearish reversal

After a brief foray above the key £0.8910 resistance on Wednesday, EUR/GBP has finally started to turn around.

The £0.8857 level is going to be key to where we go from here, with an hourly close below it pointing towards a bearish head and shoulders completion. Conversely, a break above £0.8902 would signal a likely bullish push back through £0.8910.

EUR/GBP chart

USD/JPY continues to trade lower

The price has hit a 15-month low today, with USD/JPY continuing its descent.

There is a strong chance we will see a continuation of this move today, with the middle Bollinger band providing good selling opportunities. A break above ¥106.86 would negate this short-term bearish outlook. However, for the most part, a break above the upper Bollinger band would signal that something is shifting in sentiment.

USD/JPY chart

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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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