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 losing ground against the euro and pound. However, with USD/JPY rallying sharply yesterday, we are seeing a divergence between European and Japanese currencies.

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Publication date : 2018-09-21T10:10:35+0100

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EUR/USD rallies into crucial resistance zone

EUR/USD has rallied through the $1.1746 resistance level, with the pair shifting into the next major level at $1.1790.

The ability to break through this level is going to be key in determining where we go from here. With the pair relatively overextended, there is a good chance we could retrace lower from this resistance level. However, as long as we do not see a break below $1.1650, any such weakness would be seen as a buying opportunity.

EUR/USD chart

EUR/USD chart

EUR/USD chart

GBP/USD reverses lower after break through key resistance

GBP/USD managed to rally through the $1.3212 level yesterday, with the sellers coming in overnight to bring us back to that same level.

The uptrend seen through recent weeks points towards a strong possibility of further upside to come, with a break below $1.3097 required to negate this recent uptrend. Until then, any further downside is likely to be bought into.

GBP/USD chart

GBP/USD chart

GBP/USD chart

USD/JPY looking set to retrace once more

USD/JPY managed to rally from trendline support perfectly yesterday, with the pair pushing through the top end of the Bollinger band. However, with the price shifting back below the upper band, we can draw similarities with the previous occasions that we broke higher within this channel.

The past two rallies through Bollinger band resistance brought about another retracement into the channel bottom, with the sell signal coming from a drop back into the Bollinger, as is currently happening. We are also seeing the stochastic reach trendline resistance, bringing a potential shift in momentum. As such, we look likely to turn lower over the short term, yet unless we break below ¥112.04 short-term losses look like another buying opportunity.

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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