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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

FX levels to watch: EUR/USD, GBP/USD, USD/JPY

Further losses in equity markets are hitting FX pairs too, with risk appetite on the wane.

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EUR/USD back to support zone

EUR/USD has fallen back towards a zone of support, around $1.1440.

A close below this is required to open the way to the $1.13 lows from August. We have seen a lower high created in mid-October, so a sustained rebound requires a move above $1.1550 to challenge $1.16.

EUR/USD chart

GBP/USD bounces for now

After yesterday’s losses, GBP/USD is rebounding for the time being, although it remains firmly in a downtrend from the highs of mid-October.

Rallies to $1.31 may find fresh selling, but a close above this level would at least generate a new higher high. The October low at $1.2922 could be potential support, but below this $1.2773 and $1.2635 come into view.

GBP/USD chart

USD/JPY falls back after new higher high

USD/JPY’s bounce from the lows of mid-October is under threat, although we saw weakness towards the end of last week that resolved in a short-term move higher.

A higher high has been created in the move from the October lows, so any dip that holds above ¥112 could be a buying opportunity.

USD/JPY chart

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