Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and 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

Cable is dropping as policymakers turn dovish once more, while USD/JPY falls back from key resistance. 

EUR/USD notes
Source: Bloomberg

EUR/USD breaks resistance

Yesterday saw EUR/USD break long-term trendline resistance, pushing to its highest level since May last year.

This breakout could be followed by some weakness, but so long as the price does not drop back below $1.1445 the short-term bullish picture remains intact. 

EUR/USD chart

GBP/USD downtrend remains

A shift in dovish sentiment continues to weigh on cable, with GBP/USD heading towards the $1.2775 and $1.2708 support levels.

Below this, we would look to the June lows at $1.2616. The downtrend line off the July high remains firmly intact, and even a push back to $1.29 would not change the current direction of travel. 

GBP/USD chart

USD/JPY pushing lower from resistance

USD/JPY has turned lower from resistance at ¥114.37, replicating the move seen in mid-May. It has also broken the rising trendline off the June lows.

With the pair now oversold intraday, we will see if a bounce can recover the 100-hour simple moving average (SMA) and ideally recover ¥114, if this is done then a revival of the rally is possible. However, If the price stays below ¥114 then the likelihood of further losses increases. 

USD/JPY chart

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