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

EUR/USD and GBP/USD are both pushing higher yet again today, with rising channel formations continuing to dominate. Meanwhile, overnight gains in USD/JPY look to provide us with a good shorting opportunity.

EUR/USD pushing higher within channel

EUR/USD continues to respect an ascending channel formation as we move into the new week, with the price heading towards the 76.4% retracement yet again.

The ascent we have been seeing so far throughout June could prove to be a retracement of the decline from $1.1996, thus highlighting the importance of the 76.4% retracement ($1.1881) as the next major point of resistance. A break above that $1.1881-$1.1996 region would point towards a wider retracement into the $1.2150 area. Until then, the rising channel continues to provide a bullish outlook, unless we fall below $1.1727.

GBP/USD turning higher once again

GBP/USD is also continuing its retracement of the May decline, with the price back into the 61.8% level that was closely respected last week.

This points towards a potential move into the 76.4% retracement at $1.3520, where a break back below $1.3354 would be required to signify a more bearish outlook.

USD/JPY rebound unlikely to last

USD/JPY has managed to rebound at the start this new week, as the pair attempts to break out of the bearish shift seen on Friday. However, that break below ¥109.47 points towards this current rebound being a likely retracement before we turn lower once again.

With that in mind, a bearish outlook is in play, with the price expected to respect the 76.4% retracement for a move lower. That deep retracement means we have a good risk-to-reward opportunity from current levels. A break above ¥110.27 would point to a shift towards a more bullish outlook.

This information has been prepared by IG, a trading name of IG Markets 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.