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

Recent trends have started to ease, with a set of weak US PMI readings sending the dollar sharply lower. Will this last?

EUR/USD rebounds into trendline resistance

EUR/USD rebounded off the back of a pair of weak US purchasing managers index (PMI) figures yesterday, bringing about an end to the losses in play throughout the week. However, this rebound is perceived as a short-term retracement unless we break through $1.1264.

As such, the respect of the 61.8% retracement and ascending trendline is notable for that narrative. Further losses look likely before long, with this confluence of resistance certainly looking like a good contender for that point of reversal.

GBP/USD consolidates after recent losses

The GBP/USD decline has slowed over the latter part of the week, yet further declines are a distinct possibility, as Theresa May is expected to lay the ground for her exit today, bringing a high likeliness of volatility when markets attempt to gauge who the new leader will be.

Watch for whether we can break through resistance at $1.2694 or not as a gauge of short-term sentiment. However, a break through $1.2814 would be required to bring about a wider bullish picture for the pair.

USD/JPY trendline breakdown signals potential wider declines

USD/JPY has broken out of its short-term uptrend, with trendline resistance ultimately bringing that upward surge to an end.

The break below ¥109.81 signaled an end to that bullish theme, with the pair subsequently falling into the next swing low of ¥109.49. Watch for a break below yesterday’s low of ¥109.45 as a bearish continuation signal. Alternately, a rally through ¥109.74 would signal a retracement coming into play as we head into the weekend.


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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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