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

Economic data has sent the euro reeling versus the US dollar, and with GBP/USD looking at risk of further losses and USD/JPY stuck at resistance, there are signs of risk aversion across FX markets.

EUR/USD knocked back by data

German purchasing managers index (PMI) figures have weighed on EUR/USD, causing the pair to drop back below $1.13 and give back most of the gains of the past few days.

If this is the beginning of a deeper retracement then the $1.118 lows come back into play. The bearish view prevails unless we see a close back above $1.132.

GBP/USD stuck in descending triangle

Dips into the $1.30 area continue to find support for GBP/USD, and rallies since mid-March have been contained by trendline resistance from the March highs above $1.3350.

A rally through $1.31 is needed to break this line. The descending triangle on the four-hour chart remains intact, and a close below $1.297 would likely mark a fresh bearish development.

USD/JPY still held beneath ¥112

The USD/JPY pair remains unable to break ¥112.00 resistance.

A continued failure to push higher targets ¥110.80, and then down to ¥109.70. A break higher still looks to challenge trendline resistance at ¥112.60.

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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