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

Dollar weakness starts to look more likely, with EUR/USD strength and USD/JPY weakness coming into play.

EUR/USD drifting lower, yet rebound looks likely

EUR/USD has been grinding lower off the back of Tuesday’s rebound, with the market drifting lower in what looks like a retracement before we pus higher.

That is due to the rise through $1.125, which negates the creation of lower highs in play over the back end of March. As such, the bulls are expected to come back into play before long, with upside expected as long as we do not see a fall below $1.1183.

GBP/USD at risk if rebound fails to hold

GBP/USD has once again rallied from the $1.30 region, with the pair showing signs of weakness despite the rebound at the beginning of last week.

A rise through $1.3123 would point towards a resurgence from here, while a fall below $1.2987 would point towards a wider bearish picture coming into play.

USD/JPY starts to turn lower after recent rebound

USD/JPY is showing signs of a bearish turnaround, with the wider negative trend coming back into play.

The fall into the ¥111.33 swing low highlights a potential weakness in this story, with a move below required to ¥111.21 add greater confidence in a bearish shift. As such, a bearish view is gradually coming into play, with a rise above ¥111.82 required to negate that outlook.

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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