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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 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 ensure that you fully understand the risks involved.

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

Euro watchers will be pleased to see EUR/USD hold the 50-day SMA, but sterling remains unable to break $1.29.

Euro Source: Bloomberg

EUR/USD holds 50-day SMA

For the past three days, EUR/USD has found support at the 50-day simple moving average (SMA) of $1.1384, with dips below this moving average finding buyers.

If this holding action continues, then a bounce back towards $1.1471, the 100-day SMA, would be one to watch. A loss of this zone would bring $1.13 back into play.

EUR/USD chart
EUR/USD chart

GBP/USD held below $1.29

GBP/USD has been stuck fast at $1.29 for several days. A failure to break higher raises the risk of a deeper retracement.

Near-term support lies at $1.2773 (close to the 50-day SMA at $1.2763 too), while a bigger dip finds support around $1.27. Above $1.29, the price targets $1.3039.

GBP/USD chart
GBP/USD chart


USD/JPY pulls back from overnight high

Since yesterday's high, the USD/JPY price has pulled back, but the uptrend from the lows of last Thursday remains intact. Even a dip to ¥108.50 would still be a possible buying opportunity, and for now the price is holding above ¥108.70.

A fresh move higher, reinforced by the bullish crossover in the daily moving average convergence divergence (MACD) indicator, would target ¥109.20 and then higher.

USD/JPY chart

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