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

US dollar weakness remains the name of the game, with EUR/USD and GBP/USD gaining ground, amid weakness for USD/JPY.

Video poster image

EUR/USD hits new three-year high

EUR/USD has punched through a crucial resistance level this morning, as news of a breakthrough in German coalition talks seemingly raising the chances of a continued Angela Merkel leadership.

The push through $1.2092 provides a new three-year high, and moves the pair into a region with very little resistance within close proximity. As long as the price remains above $1.2027, a bullish view remains in place, with retracements or period of consolidation looking like buying opportunities.

GBP/USD rallies after 50% retracement

GBP/USD has managed to break through the notable $1.3562 swing high this morning, coming off the back of a retracement into the 50% Fibonacci at $1.3457.

The fact that we have seen the price break through $1.3562 points towards further upside to come, with a rally through $1.3613 looking likely from here. A break back below $1.3457 would only serve to paint a picture of a deeper retracements, with a move below $1.3301 needed to negate the wider uptrend. 

USD/JPY weakening following overnight retracement

USD/JPY has continued its downtrend, with the price tumbling yesterday despite the short-term rally seen on Wednesday evening.

We have seen a similar move come into play overnight, with a short-term retracement giving way to further selling. As such, further downside is expected, with a break above ¥111.87 required to negate the bearish view. Keep an eye out for ¥110.84 as the next major support level to breach. 

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