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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. 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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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

The dollar is coming under pressure, with EUR/USD, GBP/USD and USD/JPY all turning against the greenback. However, with the wider trend still in play, are we going to start seeing a dollar comeback?

anonymous

Publication date : 2018-09-20T10:03:00+0100

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EUR/USD launching assault on key resistance zone

EUR/USD is turning higher yet again this morning, with the pair looking likely to challenge the $1.1718-$1.1746 resistance zone once more.

The ability to break through that resistance zone is key in determining whether we are set for a wider period of gains. As such, watch for whether we see yet another reversal at this area of resistance, or else a breakout to impact the wider picture for the pair.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD turning higher after yesterday’s volatility

GBP/USD is also gaining ground in early trade, with the pair attempting to push higher after falling below trendline support. That break could provide the first signal of an impending downturn.

However, with the price not having broken below the $1.3056 swing low, we have not yet seen a full bearish signal to point towards a break lower. Nevertheless, there is a chance we will see this rally fall short of the $1.3212 swing high, which could build on this recent trendline break. As such, the ability or inability to break through the $1.3212 level is going to be key in determining where we go from here.

GBP/USD chart

GBP/USD chart

GBP/USD chart

USD/JPY pulls back into trendline support

USD/JPY has dropped into trendline support overnight, with the recent channel looking to come back into play.

Looking at the stochastic oscillator, we can also see an area of trendline support coming into view too. With that in mind, there is a good chance we will see the pair start to turn higher, with a break below ¥111.65 required to break out of this uptrend.

USD/JPY chart

USD/JPY chart

USD/JPY chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Clients can lose more than they deposit. All trading involves risk.

IG is a trading name of IG Markets Ltd and IG Markets South Africa Limited. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in order to utilise their foreign investment allowance should the South African resident wish to open an offshore account with IG Markets Limited.

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