CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

FX levels to watch: EUR/USD, GBP/USD and USD/JPY

Today’s vote in U.K Parliament means GBP/USD may be volatile, while the euro is under pressure again.

EUR/USD back on a downward path

Having rallied to $1.155, the price of EUR/USD has weakened again, and so far this morning further downward pressure is developing.

The previous two sessions saw the pair find support around $1.145, but if this is lost then the lows from a week ago at $1.143 come into play. In the short term, we have seen lower highs since the peak last week, so any bullish recovery needs to see the price move back above $1.149.

GBP/USD faces high volatility

This evening’s vote will likely result in increased volatility for sterling crosses.

GBP/USD has pushed steadily higher over the past week, and any weakness today could be seen as a possible buying opportunity, with a dip towards $1.28 and rising trendline support from the lows at the beginning of the month offering an interesting risk-reward dynamic.

USD/JPY stuck in tight range

USD/JPY has moved sideways over the past few days, from around ¥108 to ¥109.

A break of this range is needed to provide definitive direction, but with the price having rallied overnight from the lows around ¥108, a possible short trade within the current range emerges. Alternatively, with the price having possibly bottomed out around ¥108, a break above ¥109 would confirm a more bullish view and allow traders to buy on dips as the trend develops.

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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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