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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

A mixed bag for the dollar sees a gradual ascent for both USD/JPY and EUR/USD. Meanwhile, EUR/GBP has hit a major resistance level after recent gains.

anonymous

Publication date : 2018-02-05T09:29:46+0000

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EUR/USD expected to turn higher once again

EUR/USD looks likely to follow its 76.4% retracement with another push higher, as the pair moves towards the back end of a triangle formation.

The weakness we have seen in early trade looks like the pair is creating a higher low before we push higher once more. Given the uptrend in place over recent months, the ultimate breakout from this pattern is expected to be bullish, with a fall below $1.2385 required to negate this view.

EUR/USD chart

EUR/USD chart

EUR/USD chart

EUR/GBP turning lower from key resistance

EUR/GBP managed to rally up to the crucial £0.8833 resistance level this morning, following a wider 76.4% retracement last week.

This points towards the pair breaking higher from here, with a move through £0.8833 resistance expected soon enough. However, until we break that level, there is a chance we could start to retrace lower from here. As such, while a bullish outlook remains in play, be aware of a potential retracement over the short term.

EUR/GBP chart

EUR/GBP chart

EUR/GBP chart

USD/JPY caught between trendlines

USD/JPY has been retracing lower this morning, following a strong move into trendline resistance on Friday. However, with the price having moved into trendline support, we are seeing the pair trade towards the apex of a symmetrical triangle formation.

Should we break through resistance, there is a strong chance we would simply see a deeper retracement into the 76.4% before turning lower once more. As such, we would need to break above ¥111.48 to negate the wider bearish trend, where this current upside is seen as a short-term pullback, within a bearish USD/JPY story.

USD/JPY chart

USD/JPY chart

USD/JPY chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

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