Skip to content

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, USD/JPY

Sterling and the euro continue to look strong against the dollar, while USD/JPY seems poised to turn lower. 

Video poster image

EUR/USD continues recovery

While caution has set in ahead of the European Central Bank (ECB) meeting, EUR/USD’s steady recovery this week continues.

Yesterday’s pullback from $1.2450 saw buyers emerge around $1.24, and a push through Wednesday’s high would clear the way to a move back to $1.25. An area of support is likely to be $1.2350, but much will depend on what the ECB president has to say.

GBP/USD lower highs remain unchallenged

Here too the buyers have been in control over the past couple of days, but they are soon to confront the downtrend line that has held for GBP/USD since late January.

This sequence of lower highs has yet to be challenged, with a move above $1.3960 required to break the downward progression. A turn lower from here targets the lows from the beginning of the month (around $1.37), with a move below here creating a lower low.

USD/JPY rally wavers

A rally off the lows for USD/JPY yesterday still faltered below the high from the beginning of the week, around ¥106.50.

Further declines will put this downtrend firmly back on the map, targeting the ¥105.25 level. Selling rallies on the four-hour chart has been the way to go here all year, and we would need a move above ¥107.00 to suggest that this may no longer be the case.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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.

Find articles by writer