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

The dollar has been regaining ground against the European currencies, while the yen proves one of the few currencies strong enough to gain ground against the greenback.

Video poster image

EUR/USD heading back into key resistance zone

Following a strong move lower last week, EUR/USD has managed to regain some composure.

That break below $1.2205 completed a wider double top formation, with further downside looking likely. However, with the price approaching the $1.2455 swing high, there is a chance we could see a 61.8-76.4% retracement ($1.2402-$1.2461). With trendline support and the $1.2455 level, the ability to break and hold above that resistance zone will be key to determining whether we will see further upside over the near term or not.

GBP/USD regaining ground after sell-off

GBP/USD fell below the key $1.3764 swing low last week, bringing a wider bearish view.

While this points towards further downside, there is a good chance we are seeing a retracement before the pair moves lower again. Keep an eye out for a break below the latest intraday swing low as a bearish signal, with $1.3756 the current level to watch. Until that is broken, further short-term gains seem likely.

USD/JPY consolidating after support break

USD/JPY broke below ¥105.53 support on Friday, with the price hitting a 15-month low.

This points towards further downside, yet with the price consolidating, it makes sense to await an hourly close below ¥105.24 to signal further downside. Alternately, an hourly close above ¥105.75 would point towards a more protracted retracement to the upside.

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