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 and USD/JPY

USD/JPY has recovered in line with equity markets, but there is little in the way of optimism across most FX pairs.

EUR/USD
Source: Bloomberg

EUR/USD still unable to clear $1.14

Yet again a push towards $1.14 for EUR/USD was met by selling, and while for now the downside has been stemmed around $1.135, the bearish view remains intact. Another push towards $1.13 seems likely.

One hope for the bulls is the ongoing rise in stochastics, with might suggest a weakening of bearish momentum, but it will require a close above the 50-day simple moving average (SMA) at $1.1418 to produce a more bullish view.

EUR/USD chart

GBP/USD confined in a tight range

While GBP/USD has recovered from the lows of the week, it has yet to break the $1.28 area that has been such significant resistance this week.

Continued failure to break higher will lend strength to the generally bearish case, although they have their own task to breach $1.27.

GBP/USD chart

USD/JPY rallies, but what now?

Like equity indices, USD/JPY rebounded from the lows, but the overall negative impression persists.

Trendline resistance from the Monday highs may well continue to cap gains, and if the pair does turn lower then we see a further move towards ¥112.24. A more bullish view would emerge with a move back above ¥113.20.

USD/JPY chart

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