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

Mixed signals see EUR/USD look primed for upside, while the GPB/USD has rallied into the 76.4% retracement. Meanwhile, USD/JPY has been sold into a crucial support level, which will define the outlook going forward.

Video poster image

EUR/USD in recovery mode after fall into key support

EUR/USD has managed to break higher following a drop into the crucial $1.1713 support level earlier in the week. The rally up though the $1.1812 swing high points towards further upside, despite the weakness we are seeing in early trade today.

With that in mind, the 76.4% level ($1.1751) would look like an attractive buying opportunity, should the price fall further. In any case, a bullish outlook is now in play, and would only be negated with a break back below $1.1713. 

GBP/USD rallies into 76.4% retracement

GBP/USD is experiencing a very different picture, with recent upside conforming to the creation of lower highs and lows seen through December thus far.

This points towards a potential move lower from here. Otherwise, a break above $1.3521 would negate this recent bearish pattern. Until then, further downside seems likely. 

USD/JPY falling into key support level

USD/JPY has been selling off sharply this week, following on from a rally into the 76.4% retracement over recent weeks.

The ability to break below ¥111.99 will be key to indicating that the bearish break below ¥111.66 in late November is going to be followed up by a lower high and further downside. As such, look out for the reaction to the ¥111.99 level as a guide for both short and medium-term price action in USD/JPY.

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