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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

Brexit headlines are rocking GBP pairs this morning, while the euro is back under pressure.

Euros
Source: Bloomberg

EUR/USD still stuck in downtrend

EUR/USD has rallied off the lows but remains in a broader downtrend from the highs of September.

A failure to push on above $1.135 would signal that we have more declines ahead, while a rally above this level would head towards $1.1554.

EUR/USD chart

GBP/USD rocked by Brexit headlines

The rally of GBP/USD earlier in the week has faltered, and the price finds itself back below $1.305.

Further declines will head towards $1.28, the lows from earlier in the week, while a rally above $1.305 would open the way to $1.32. With headlines appearing throughout the day, the pair is likely to be particularly volatile.

GBP/USD chart

USD/JPY falters again

USD/JPY continues to weaken, and we look for further declines towards the 50-day simple moving average (SMA) at ¥112.76.

Rallies have been sold into over the past few days, but a rebound above ¥113.64 would be bullish in the near term.

USD/JPY chart

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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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