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

More dollar weakness is resulting in some interesting FX moves, although the impact is limited with the US on holiday for Thanksgiving.

USD
Source: Bloomberg

EUR/USD recovery goes on

The downtrend that prevailed from the 15 November high was broken yesterday, with EUR/USD following on to test the $1.1836 area. The $1.1858 high then came in as the next area of potential resistance.

Even if this is broken, the $1.1879 area will then come into play. Euro bulls have their work cut out if they are to break higher, and move back in the direction of the September highs. 

EUR/USD price chart

GBP/USD rally stalls at resistance

Gloomy Office for Budget Responsibility (OBR) forecasts for UK growth knocked back GBP/USD, but only briefly, and a dire durable goods figure provided a fundamental catalyst for buyers to step in.

The rally in November has seen the pair push back to the $1.3341 area. A push above here targets $1.3427 and then $1.3659. A turn lower would suggest that we will retest the March uptrend, but it needs a drop below $1.3048 to really suggest a bearish outlook for the pair.

GBP/USD price chart

USD/JPY tumbles further

Dollar weakness has seen rallies heavily sold over the past two weeks for USD/JPY, with yesterday being no exception.

A move above ¥112.77 is needed to create a new higher high. Further declines would see the ¥110.11 level tested. 

USD/JPY price chart

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