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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

A mixed bag sees a bullish EUR/USD, a bearish GBP/USD and a neutral USD/JPY view, with the directional bias yet to be firmly established.

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EUR/USD looking up

EUR/USD managed to break above $1.1812 yesterday, bringing a more positive outlook for the pair after a deep retracement into the $1.1715 support zone. That provides us with a bullish outlook, with last night’s retracement looking like a precursor to further gains.

We are seeing those gains come to the fore this morning, with a rally up through yesterday’s high of $1.1834 likely in the short term. The next hurdle would be $1.1863. A bullish outlook is in play, as long as we do not break back below $1.1742. 

GBP/USD looks set for further downside

GBP/USD managed to regain ground yesterday, with the price retracing 70% before turning lower.

There is a chance we could see a move into the 76.4% region. Yet, in either case, a bearish outlook remains in place unless we push above $1.3467.

USD/JPY triangle consolidation in place above key support

USD/JPY is consolidating, following a rally up from the crucial ¥112.00 support region.

A break below that level would provide a bearish picture, given the completion of a head and shoulders formation. Alternatively, an hourly close above ¥112.83 would provide a more bullish view.

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.

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