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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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.

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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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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