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 and USD/JPY

The euro and sterling continue to lose ground versus the dollar, but USD/JPY is mounting a strong defence of its rising trendline.

Source: Bloomberg

EUR/USD tests $1.14

The losses continue for EUR/USD, and a small overnight move higher was met with selling as the price pushes below the support zone around $1.14. From here the $1.13 low from mid-August comes into play.

The pair has been in a downtrend from late September, with the mid-October rally creating a lower high. Any bounce that fails to break $1.15 is another selling opportunity.

GBP/USD turns lower again

A steady downtrend continues for GBP/USD, and with the price now below the early October low of $1.292, further losses seem likely. Potentional support sits at $1.2773 and $1.2635.

Any rally intraday that holds below $1.30 would be another selling opportunity, while a close above $1.305 is needed to suggest the buyers are back in charge.

USD/JPY holds rising trend

While USD/JPY has had a tough couple of days, the pair continues to hold the March rising trendline.

Further gains will target ¥113.00 and then ¥113.64 and ¥114.50. The bullish view persists unless we see a close below ¥111.62, the low from last week.

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