CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Dollar downside coming back into play for EUR/USD, GBP/USD and USD/JPY

Dollar downside looks likely to return once again, with EUR/USD, GBP/USD, and USD/JPY all starting to reverse after the latest retracement.

EUR/USD turning higher after 76.4% retracement

EUR/USD is on the rise following a retracement into the 76.4% Fibonacci retracement level.

The recent rally through $1.1832 provided a bullish signal for the pair, with the latest pullback looking like a retracement within that move. As such, further upside looks likely from here as we build on the bullish reversal break.

GBP/USD pullback likely to provide buying opportunity

GBP/USD is also attempting to reverse higher after a decline which has taken the pair towards the 50% retracement level.

While the size of that retracement does highlight the potential for a deeper pullback coming into play, it makes sense to watch out for a bullish resurgence before long. That bullish outlook holds until we see a break below the $1.2911 level.

USD/JPY expected to decline further after recent rebound

USD/JPY has been attempting to regain ground following a sharp decline that completed a bearish head and shoulders formation.

That short-term bearish pattern, coupled with the wider long-term downtrend, highlights the likeliness that we will continue to move lower from here. With that in mind, further downside is expected, with a bearish outlook in play unless we see a break through the ¥105.74 level.

This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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