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

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

Both EUR/USD and EUR/GBP have moved into a pivotal level, which will dictate the state of play for the day. Meanwhile, USD/JPY has started to show some signs of short-term strength.

IG Analyst

Publication date : 2018-01-19T09:27:36+0000

Video poster image

EUR/USD approaches crucial resistance level

EUR/USD has been gaining ground overnight, with the pair approaching the key $1.2288 resistance level. The ability to break through that level will be crucial in determining whether the wider bullish outlook will come back into play.

This would seem likely before long, with the recent descent looking like a retracement of the previous gains. As long as the price remains below $1.2288, there is still a chance it will start to turn lower again. With that in mind, keep an eye out for whether we can break through near-term resistance, as a guide on where we go from here.

EUR/USD chart

EUR/USD chart

EUR/USD chart

EUR/GBP back to crucial support zone

EUR/GBP has been selling off from the top end of its descending channel formation, with the price moving back into £0.8809 support.

That level will be crucial for the day going forward, where a convincing break to the downside would complete a double top formation. Of course, given the significance of this level, there is a chance we could see a rebound too. However, what with the wider trend, there is a strong chance that we will soon see the price fall back towards the lower half of this channel.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

USD/JPY could move into more bullish period

USD/JPY has broken higher from a descending wedge formation, with the price rallying through the ¥110.98 swing high.

This brings about a heightened chance of a bullish retracement for the pair, with the price falling into the 76.4% level. A move back below ¥110.19 would negate the possibility of short-term gains. However, for now, there is a chance we could start to see an immediate period of strength for the pair.

USD/JPY chart

USD/JPY chart

USD/JPY chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about

Trading forex
Forex CFD details

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, 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. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.