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 euro and sterling are finding it hard to hold their ground against the dollar, while USD/JPY is on the up once more.

EUR/USD in ongoing correction

The price of EUR/USD continues to push lower, falling below $1.13 support and heading to the November low at $1.1215. Further declines bring $1.1118 into view.

Since September, substantial rallies have met with trendline resistance, and any push back towards $1.143 could well meet the same fate. So far, no change has been seen in the relentless downward move, but a rally above $1.132 might provide hope of a near-term rebound.

GBP/USD still on the back foot

If GBP/USD has turned a corner longer term, it needs to start thinking about creating a higher low, preferably above $1.26.

For now, the downtrend from last April seems to have turned into a consolidation phase over the past few months, with rallies towards $1.32 followed by retracements towards $1.26. This looks to be playing out again, with $1.2773 and $1.2635 as the next targets on the downside. A recovery above $1.29 might suggest that a higher low is in place.

USD/JPY pushes higher again

The USD/JPY recovery goes on here, with the price moving back above the 50-day simple moving average (SMA) for the first time since mid-December. Further gains target ¥111.52.

Last week saw the price stabilise around ¥109.80, and then break higher. A pullback towards ¥110.00 might provide another buying opportunity.

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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.