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 is coming under pressure, with EUR/USD, GBP/USD and USD/JPY all turning against the greenback. However, with the wider trend still in play, are we going to start seeing a dollar comeback?

Video poster image

EUR/USD launching assault on key resistance zone

EUR/USD is turning higher yet again this morning, with the pair looking likely to challenge the $1.1718-$1.1746 resistance zone once more.

The ability to break through that resistance zone is key in determining whether we are set for a wider period of gains. As such, watch for whether we see yet another reversal at this area of resistance, or else a breakout to impact the wider picture for the pair.

GBP/USD turning higher after yesterday’s volatility

GBP/USD is also gaining ground in early trade, with the pair attempting to push higher after falling below trendline support. That break could provide the first signal of an impending downturn.

However, with the price not having broken below the $1.3056 swing low, we have not yet seen a full bearish signal to point towards a break lower. Nevertheless, there is a chance we will see this rally fall short of the $1.3212 swing high, which could build on this recent trendline break. As such, the ability or inability to break through the $1.3212 level is going to be key in determining where we go from here.

USD/JPY pulls back into trendline support

USD/JPY has dropped into trendline support overnight, with the recent channel looking to come back into play.

Looking at the stochastic oscillator, we can also see an area of trendline support coming into view too. With that in mind, there is a good chance we will see the pair start to turn higher, with a break below ¥111.65 required to break out of this uptrend.

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