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

The Fed has put a lead weight on the US dollar, driving the greenback lower as it revises its policy outlook.

EUR/USD surges after FOMC

The weaker dollar lit a rocket underneath the euro yesterday, and we have seen the EUR/USD price push back above $1.15.

Further gains target $1.1554 and then $1.16 and the top end of the upward channel. The $1.14 area is key for possible support.

GBP/USD bounces off 200-day SMA

GBP/USD found support at the 200-day simple moving average (SMA) of $1.3056, and then began a new move higher.

Further gains target $1.32, the highs from the end of last week, and then $1.3338 and $1.3470 come into view from here. The bullish view remains, unless we see a break of $1.30 and the creation of a lower high.

USD/JPY takes a turn lower

The dollar’s drop yesterday further reinforces the impression that the USD/JPY is headed lower.

The price is oversold on an intraday basis, but any rebound may well provide a lower high in due course and a new selling opportunity. The ¥109.20 and then ¥109.60 levels are areas of possible resistance. Further declines head towards ¥108.40 and then ¥108.00.


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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