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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 and USD/JPY

The euro remains under pressure but sterling has managed to climb above a key level.

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EUR/USD sees upward momentum falter

The price of EUR/USD has rallied from the lows of last week, but has failed to push higher.

As a result, we may see bearish momentum develop without a close above $1.1450. Further declines target the $1.13 level of support, which held in August and October. Below this the $1.1118 area comes into play.

GBP/USD solidifies hold above $1.3050

Cable has managed to move GBP/USD above the $1.3050 area that provided resistance at the end of last week.

Further gains would head towards possible resistance at $1.32 and then $1.33. A bearish view would prevail with a move back below $1.2950.

USD/JPY challenges recent resistance

The 31 October high at ¥113.38 for USD/JPY is still acting as resistance, with an attempt to move above this level today defeated.

Above this, ¥113.64 and then ¥114.50 are potential targets. Due to ¥112.56 being defended by buyers last week, a move below this is required to put a more bearish view on the pair.

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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