Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

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

Early dollar strength has provided counter-trend moves this morning. However, with clearly defined trends in place, this could provide a reversal opportunity.

Video poster image

EUR/USD moving lower in retracement mode

EUR/USD is continuing its descent, following a brief foray above $1.2538 last week.

The current move lower looks likely to continue in the short term, but unless we break below the $1.2205 mark, there is a strong chance we are seeing a retracement. As such, watch out for the Fibonacci levels as potential bullish entry areas.

EUR/USD price chart

GBP/USD retracement unlikely to last

GBP/USD is also moving lower, coming off the back of the rally up through $1.4067 last week.

That break points towards an impending resurgence for the pair, with the current move lower simply providing a more advantageous buying opportunity. As long as the price does not fall below $1.3800, a bullish outlook remains in play.

GBP/USD price chart

USD/JPY approaching bullish break

USD/JPY has begun trading within the upper half of the Bollinger band, with the 20-hour simple moving average (SMA) providing support rather than resistance.

This is the first time we have seen the pair exhibit this in almost two weeks, providing a potentially bullish short-term view. However, we still remain below the crucial ¥106.86 swing low, so we need a break above that level to confirm the bullish view. But, until that happens, there is still a good chance of the pair turning lower soon enough. 

USD/JPY price chart

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.

Find an article

Find articles by writer