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

Dollar strength remains the name of the game, with EUR/USD and GBP/USD weakness expected to be joined by a rally in USD/JPY.

EUR/USD falling back once again

EUR/USD is continuing its bearish surge, with the pair turning lower yet again after a brief bounce yesterday.

The break below the $1.1290-$1.1301 support zone points towards further downside to come, and with this latest turn lower it looks like we are not going to wait around for it to happen. As such, further downside looks likely from here, with continued creation of lower highs key to maintaining this downtrend. A break through $1.1342 would be required to bring about a more bullish short-term outlook.

GBP/USD looking likely to turn lower once more

A similar story for GBP/USD has seen the pair break into a new one-month low this week, with the price consolidating overnight.

This looks like a precursor to further downside, with a bearish view in play unless we see a break up through the $1.2959 resistance level.

USD/JPY expected to turn higher from here

USD/JPY has been drifting lower, with the pair moving towards the 61.8% Fibonacci retracement at ¥110.16.

The uptrend in play over the past month looks likely to persist, with this recent pullback providing us with a good buying opportunity. As such, further downside shouldn’t necessarily be something to worry about unless we break below ¥109.56. A bullish outlook remains in place unless that level is broken.

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.