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

The euro has finally managed to move higher, but cable is still struggling, as investors await the vote on the withdrawal agreement.

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EUR/USD finally clambers above $1.14

The price of EUR/USD has climbed steadily higher and is finally managing to move and hold above $1.14.

Since the end of November the price has established higher lows, at $1.127 and then $1.13. As a result, further sell-offs may create higher lows, and it would need a move back below $1.13 to negate the more bullish view. Upside targets lie at $1.1475, and then on to $1.1554.

EUR/USD chart

GBP/USD unsteady ahead of Brexit vote

It promises to be a volatile week for sterling, with the Brexit withdrawal vote scheduled for Tuesday evening. ‘Sell the rallies’ still appears to be the way here, as even this morning’s bounce towards $1.275 brought out the sellers for GBP/USD.

However, dips below $1.27 have proven short-lived, so bears need to see a daily close below this level to ignite more downside. Bulls will need a move above $1.285 to suggest the new approach is to ‘buy the dips’.

GBP/USD chart

USD/JPY bounces from 100-day moving average

For the second time in three sessions USD/JPY has bounced off the ¥112.25 area, coinciding with the 100-day simple moving average (SMA).

If the bulls can hold this it will be a first step, but they would still need to recover ¥113.00 and break the sequence of lower highs in place since the end of November. If the bears can get a daily close below ¥112.20 then momentum should carry them on towards ¥111.50.

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.

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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.