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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

US dollar weakness is in play yet again, with EUR/USD and GBP/USD hitting multiyear highs, while USD/JPY falls into a four-month low.

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EUR/USD pushes further into three-year high

EUR/USD has managed to break through key resistance levels of late, with the price hitting a new three-year high.

Given the strength of the recent move higher, there is a chance of a retracement before long. However, with a clear uptrend in place, the bullish view remains in play, unless the price falls back below $1.2111.

GBP/USD hits new 18-month high

GBP/USD has continued to move higher following the recent break through the crucial $1.3659 resistance level. That formed a new 18-month high for the pair, with very little in the way of resistance up ahead.

With that in mind, further upside seems likely from here, with any short-term retracement likely to be a pullback, rather than a reversal. Only a break back below $1.3537 would negate this bullish outlook.

USD/JPY heads lower once more

USD/JPY is turning lower yet again this morning, with the dollar sell-off picking up where it left off last week. With the price breaking below ¥110.84, we are now seeing the pair push lower into a region with very few notable support levels.

Keep an eye out for ¥110.89 and ¥111.69 as near-term resistance levels. As long as the price remains below ¥111.69, the bearish view remains, with the pair looking set to continue this significant recent downtrend.

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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