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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

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

USD/JPY has held on to the bounce from earlier in the week, but EUR/USD and GBP/USD are losing ground once again.

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EUR/USD on the back foot

EUR/USD has dropped back rapidly over the week, and last week’s low at $1.1432 is now likely to be tested.

A close below this opens the way to $1.13, the August low. A close above $1.16 is needed to suggest that a more bullish view prevails.

EUR/USD chart

GBP/USD tests key moving average

While the price is holding above the 50-day simple moving average (SMA) at $1.3005, the overall picture for GBP/USD seems bearish given the declines seen over the past week.

It would require a close above $1.32 to reverse this view. Further declines target $1.2926, and then down to $1.2773.

GBP/USD chart

USD/JPY buyers still in control

USD/JPY’s bounce off the lows from the beginning of the week remains intact, and a fresh drop yesterday brought out the buyers.

Above ¥112.75 the price targets ¥113.64 and then ¥114.49. A close below ¥111.62 is needed to negate rising trendline support and suggest a more bearish view is developing.

USD/JPY chart

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