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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. 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

Further euro strength has extended the trend here, while the pound remains under pressure.

Euro
Source: Bloomberg

EUR/USD buyers keep trend going

A steady rising trend over the past week for EUR/USD has produced another pullback overnight, with the price dropping back towards $1.1860.

However, buyers are entering to push the price higher, with a move above yesterday’s high of $1.19 opening the way to $1.1950 and higher. A move below $1.1830 would likely end the short-term uptrend.

EUR/USD price chart

GBP/USD pushes lower

GBP/USD continues to log lower highs in its December decline, with yesterday’s rally petering out around $1.3420.

Further losses will head to $1.33, which has acted as strong support over the past two weeks. A move above $1.3420 would target $1.3469.

GBP/USD price chart

USD/JPY aims to break key resistance

A steady rally over the past week for USD/JPY sees the price set to challenge the ¥113.75 area, the high from mid-December, and then on to ¥113.91.

Above this is the key ¥114.37 resistance area, while a move through ¥114.00 would put the price back above the 2017 downtrend.

USD/JPY price chart

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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