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

Cable’s rally has eased thanks to the lack of a Brexit deal, while USD/JPY is trying to recover after heavy losses yesterday.

Video poster image
GBP/USD
Source: Bloomberg

EUR/USD turns down again

EUR/USD has fallen back towards the $1.1836 area that has provided support over the past week; dips below this level have been seen, but have not turned into deeper retracements.

If this holds, then a push back to $1.1880 and then $1.1950 is possible. Below $1.1836, the $1.1808 and then $1.1725 levels are areas of possible support.

GBP/USD moves back below $1.34

Disappointment at no Brexit deal has caused a deep pullback for GBP/USD in the November rally, but for now it is still a higher low.

A close below $1.3221 is needed to negate the uptrend from the lows of the month. A bounce back above $1.34 would signal that more gains are likely, with a push back to last week’s highs at $1.3550. 

USD/JPY struggles to bounce back

The surge from the lows of last week has been brought to a halt, with the price for USD/JPY dropping back below the 50-day simple moving average (SMA) of ¥112.87.

Further losses would see the area around ¥111.80 tested, and then down to ¥111.00. A recovery needs to post a daily close above ¥113.00 to suggest a broader rally is in progress. 

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