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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, USD/JPY

The dollar is coming under pressure, with gains across the likes of EUR/USD, GBP/USD and USD/JPY this morning.

Euro and dollar
Source: Bloomberg

EUR/USD testing key resistance

EUR/USD has managed to break higher from a falling wedge formation this week, with the price breaching through $1.1787 resistance. The big test comes at the $1.1832 level, which if broken, would lead to a wider bullish picture for the pair.

With that in mind, keep an eye out for that level, where an hourly close above it would point towards further gains and a more positive outlook for the pair.

EUR/USD chart

GBP/USD rallies into key resistance zone

GBP/USD has also seen significant gains this week, yet with the price having failed to push above $1.3292 thus far, the downtrend remains intact. Up above, we have a crucial region of resistance, with the 50 and 200-period simple moving averages (SMA) accompanied by the 76.4% retracement, and the swing low set last Tuesday.

Watch out for any potential break or reversal from the $1.3222 region, as it will be key in determining where the pair goes from here. A break above $1.3292 would be required to negate this recent downtrend.

GBP/USD chart

USD/JPY rolling over after consolidation

USD/JPY (大口) has finally broken lower after a recent slowing of the bullish trend. The move below trendline support, and the ¥112.32 swing low has since been joined by a rally back into trendline resistance.

As such, we are now likely to see a renewed break lower, as the market continues to turn around. A break above the ¥112.83 swing higher would be required to negate this bearish short-term view.

USD/JPY chart

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