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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

A mixed outlook for the dollar sees expectations of a strengthening greenback against the euro and yen, while the pound is enjoying a period of strength, bringing about a more bullish outlook.

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EUR/USD turning lower from Fibonacci resistance

EUR/USD is starting to weaken this morning, following on from a rally into the 76.4% retracement.

The creation of lower highs and lows over the past week points towards the possibility of a bearish turn lower once more today. With that in mind, we would need to see a break back up above $1.2314 to provide a shift from this recent bearish trend.

GBP/USD rebounds through key resistance

GBP/USD has been tentatively pushing through the crucial $1.4097 resistance level since Friday, with the price having rallied up from a drop into trendline support on Thursday.

This rally now provides a more bullish outlook, with the wider uptrend coming into play once again. With trendline resistance up ahead, there is a chance we could start to retrace lower in the near term. However, unless we break below the $1.3965 level, there is a chance we could see any retracement lead to further upside.

USD/JPY moving higher from inside trendline

USD/JPY has seen a short-term bounce from the inside trendline dating back to late February. The recent rally through ¥107.01 and ¥107.31 point towards a potential bullish reversal for the pair following months of downside.

Should we push up through ¥107.49, there is a strong chance we will see a strong push higher. The late-February high of ¥107.90 represents the next major resistance level to watch out for. While there are clear signs of a potential reversal, it should be noted that this pair is particularly susceptible to any shifts in the status of the US-Chinese trade standoff, raising volatility.

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