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, USD/JPY, AUD/USD

A mixed picture for the dollar sees potential weakness for the yen and the Aussie dollar against the greenback, while the euro looks set for a period of weakness.

Dollar and pound
Source: Bloomberg

EUR/USD showing signs of reversing lower once more

EUR/USD managed to break higher yesterday, following the gains seen late on Wednesday. However, we are seeing the pair now break below the key $1.0647, which brings about the potential for a more protracted move lower to end the week.

Given that break, any move higher would be expected to fall short of the $1.0679 peak seen yesterday.

EUR/USD price chart

USD/JPY shows signs of further weakness

USD/JPY has sold off heavily over recent days, with yesterday’s low of ¥113.08 providing a key reference point for this morning.

A break and hourly close below that level would provide a more bearish outlook for the coming days. It is worth bearing in mind that the wider trend remains bearish given the recent inability to break through ¥115.38. 

USD/JPY price chart

AUD/USD weakness would provide bullish entry

The Australian dollar has been a strong performer of late, with a clear uptrend for AUD/USD. We have seen a repeated pullback to the 50% retracement overnight and, with the current break below that level, it looks like we could get a better entry price for longs.

Essentially as long as $0.7637 remains unbroken, another leg higher seems likely, with retracements providing opportunity. 

AUD/USD price 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