Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Dollar strength has abated slightly, but overall the greenback’s rally continues to hit key currency pairs.

EUR/USD returns to key support

EUR/USD is now testing the crucial support zone around $1.22 that has held since the middle of January.

Below $1.2165, the $1.2092 level comes into play. A rally will target the $1.24 area, and a push above here would break the sequence of lower highs seen on the four-hour chart since mid-February.

GBP/USD still hit by Carney’s dovishness

There has been little stopping GBP/USD on its downward move over the past week, but with UK data drying up we may see a slowdown in the rate of descent.

It has fallen below the low from 5-6 April, around $1.40, but with momentum so heavily oversold on the four-hour chart a rebound is possible. Above $1.3943, the pair targets $1.4070 and $1.4145 in the near term. Further declines will target $1.3836.

USD/JPY flies higher

USD/JPY has enjoyed its first sustained rally in weeks, reaching the 100-day simple moving average (SMA) for the first time since the middle of January.

The next upside target comes in at ¥110.50. The price has become overextended in the short term, which could result in a retracement towards ¥107.50. 

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.

Find articles by writer