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

Early dollar strength has provided counter-trend moves this morning. However, with clearly defined trends in place, this could provide a reversal opportunity.

Video poster image

EUR/USD moving lower in retracement mode

EUR/USD is continuing its descent, following a brief foray above $1.2538 last week.

The current move lower looks likely to continue in the short term, but unless we break below the $1.2205 mark, there is a strong chance we are seeing a retracement. As such, watch out for the Fibonacci levels as potential bullish entry areas.

GBP/USD retracement unlikely to last

GBP/USD is also moving lower, coming off the back of the rally up through $1.4067 last week.

That break points towards an impending resurgence for the pair, with the current move lower simply providing a more advantageous buying opportunity. As long as the price does not fall below $1.3800, a bullish outlook remains in play.

USD/JPY approaching bullish break

USD/JPY has begun trading within the upper half of the Bollinger band, with the 20-hour simple moving average (SMA) providing support rather than resistance.

This is the first time we have seen the pair exhibit this in almost two weeks, providing a potentially bullish short-term view. However, we still remain below the crucial ¥106.86 swing low, so we need a break above that level to confirm the bullish view. But, until that happens, there is still a good chance of the pair turning lower soon enough. 

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