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 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, GBP/USD and USD/JPY

Dollar weakness is dominating this morning, with EUR/USD strength and USD/JPY weakness the dominant force. However, with key breaks for EUR/USD and GBP/USD, will this current upside simply represent short-term rebounds before we move lower yet again?

Video poster image

EUR/USD could fall once again after double top

Following on from the completion of a double top on Wednesday night, EUR/USD has been rallying overnight.

That break below $1.2205 points towards the potential for further downside, with a break above $1.2355 required to negate the possibility that we are simply seeing a retracement before we move lower once again. Until then, a short position in the zone between the 61.8% and 76.4% Fibonacci levels ($1.2278-$1.2308) looks attractive.

GBP/USD breaks below key support

GBP/USD managed to break below the crucial $1.3764 mark on Wednesday night, providing the pair with a lower high and lower low on the wider context.

This points towards further downside to come, with any short-term rebound likely to lead to further downside before long. That being said, we are likely to form a falling wedge pattern, providing a signal that the eventual breakout will come to the upside. A rally above $1.4070 would be required to signal an end to the current downside.

USD/JPY sells off following recent retracement

USD/JPY managed to turn lower from the 76.4% retracement earlier in the week, with the price approaching the ¥105.53 support level.

A break below there would form a new 15-month low. This is likely to be the case, with the downtrend remaining intact. As such, a bearish outlook remains unless we see a move up through ¥107.20.

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