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

After some weakness over the weekend, FX markets are showing signs of reviving risk appetite, which may continue now that the US is back from its holiday.

EUR/USD back to channel support

EUR/USD’s fall has continued, but it is now nearing the bottom-end of the rising channel. If a bounce from around these levels takes place, a higher low in the uptrend from November lows has been created.

This might suggest a move back towards the top-end of the channel, around $1.157. A break below $1.132 would mark a significant change, putting the sellers back in control.

GBP/USD recovers from recent weakness

GBP/USD's overall upward trend from the lows of December continues, although it received a sharp check on Friday. However, the price continues to hold the 200-hour simple moving average (SMA) of $1.285, having bounced back above it yesterday.

This dip may see fresh buying, targeting $1.30 in the near term. A more bearish view could develop, but it would require a close below $1.28.

Dip in USD/JPY uptrend provides bulls with an opening

As with equities, USD/JPY's bounce has stalled over the past couple of sessions, but the uptrend is still in place.

The pullback from Friday highs has been met with buying so far this morning, with the price finding support around ¥109.35. If a higher low is created here, then the price moves back towards ¥110.00. A bigger retracement targets the ¥108.80 area and rising trendline support from the 10 January low.

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.

See your opportunity?

Seize it now. Trade over 17,000 markets on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.