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, USD/JPY

The euro is struggling, but the pound has managed to recover from some early lows.

Video poster image

EUR/USD bears back in charge

EUR/USD’s brief rebound of last week appears to have run its course, with the price back at the $1.1465 area that has held as support since last Wednesday.

Below this the pair will head towards $1.1296, retracing the entirety of the move from the August lows. So long as the price remains below $1.1554 then the outlook remains bearish.

GBP/USD still on the up despite weakness

While the price has dropped back from yesterday’s highs, the powerful rebound from $1.304 suggests the move higher will resume soon for GBP/USD.

Above $1.314, the price will head towards $1.32 and then the highs of September above $1.33. A close below $1.304 is needed to suggest the sellers are back in control.

USD/JPY takes on trendline resistance

Downtrend resistance at ¥113.50 will come into play if the bounce seen so far today for USD/JPY gathers momentum.

If it breaks higher, then ¥113.64 and then ¥114.50 are the next targets to watch. Further declines below ¥112.80 will open the way to ¥112.15 and then rising trendline support at ¥111.60.

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