CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

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

The dollar has been tentatively gaining ground, with EUR/USD and GBP/USD both losing ground in the short term. However, with the trend clearly defined, we are likely to see the dollar fall back once more soon enough.

EUR/USD falling below trendline and Fibonacci support

EUR/USD has been turning lower overnight, with the price selling off the back of a resolution to the US government shutdown.

That has taken us down past the confluence of the 76.4% retracement and ascending trendline support. The ability to maintain above the $1.2223 level is going to be key from here, with a fall below providing a somewhat more bearish outlook for the short term. Until then, the recent creation of higher highs and higher lows points towards a strong possibility of a move higher before long. 

GBP/USD falls into near-term support

GBP/USD is moving lower, following the recent rise for the pair. This has brought the price into the previous high of $1.3943, which is certainly a notable support level worth watching out for.

This recent weakness is expected to be a short-term affair, with trendline support coming into play should we break below $1.3943. Whether we do see that deeper retracement or not, a bullish wider view remains unless the price falls below $1.3838.

USD/JPY falling into key support

USD/JPY attempted to regain ground yesterday, yet with the Bank of Japan (BoJ) rate decision overnight, we have seen yen strength return.

This has started to drag the pair closer to the 76.4% retracement at the ¥110.50 support level. A break below there would point towards a potential resumption of the wider bearish trend, with ¥110.19 representing the key support level to break as confirmation. Until we fall past the 76.4%, there is a chance we could see buyers come in once more.

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