Skip to content

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, GBP/USD, USD/JPY

The dollar has taken a breather after yesterday’s Fed meeting, with short-term rebounds for the euro, sterling and the yen looking likely. 

Video poster image

EUR/USD tiptoes higher

A rebound here was certainly on the cards for EUR/USD, after some relentless moves lower.

But we will need a move back above $1.2150 to be sure that the buyers remain in charge. Otherwise, such a bounce could provide a fresh selling opportunity for those that missed the drop from $1.24. Any rally that fails to push on above $1.2150 would be another chance for the bears.

GBP/USD holds the 200-day SMA

Cable bears should be on alert for a possible rebound for GBP/USD too, but it may well be short-lived.

Any run that fails to move back above $1.38 would constitute a selling opportunity. The 200-day simple moving average (SMA) at $1.3539 has yet to be meaningfully tested, but if this is broken then $1.3320 would be the next level to watch for on the downside.

USD/JPY rally stalls

As expected, the Federal Reserve (Fed) meeting took some wind out of the sails of the dollar rally for USD/JPY.

Given how far the price has come in recent weeks it was always going to be tough for the Fed to keep the dollar moving higher. A pullback towards the rising trendline from the March lows would provide a possible buying opportunity, so we look for a dip towards ¥108.50. 

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

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.