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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, GBP/USD, USD/JPY

The euro and sterling both remain under pressure, while USD/JPY’s bounce has ground to a halt.

GBP/USD
Source: Bloomberg

EUR/USD stuck below $1.18

Gains for EUR/USD this week have been capped at the $1.1780 area, with a push above here likely to target the high from last week at $1.1832.

As long as this holds we are likely to see further selling pressure develop along the line. Below $1.17 and the crucial August low at $1.1662 comes into play. 

EUR/USD price chart

GBP/USD plumbs new depths

Despite a better services purchasing managers index (PMI) yesterday, GBP/USD continues to push lower towards the $1.3153 level.

The sequence of lower lows remains intact, and it would take a push back above $1.33 to put any dent in the ongoing bearish outlook. A drop back towards $1.2970 and the post-March rising trendline cannot be ruled out.

GBP/USD price chart

USD/JPY stalled at ¥113

USD/JPY continues to be stuck below ¥113.00, with repeated failures to break above this level.

A turn lower targets ¥111.69, and would mean that the latest rally has simply created a fresh lower high in the ongoing downtrend. A close above ¥113.00 would open the way to a move to ¥114.37.

USD/JPY price 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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