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 strength in play for EUR/USD, GBP/USD and USD/JPY

EUR/USD, GBP/USD and USD/JPY driven by dollar strength as US yields continue to rise.

EUR/USD fading as ECB dent rise in European 10-year yields

EUR/USD is on the back foot this morning, with yesterday’s European Central Bank (ECB) actions driving a divergence between US and eurozone treasury yields. That widening gap will likely drive EUR/USD lower if it persists, with the currency pair looking to end a recent rebound.

Despite failing to reach a deeper Fibonacci level, we are now seeing a more bearish stance come back into play. A break below trendline support has now taken us towards the $1.1928 support level. A break below that point would signal a potential bearish reversal coming into play which furthers the wider downtrend in play despite recent gains. As such, the ability to break below the $1.1928 should tell us a lot about the near-term outlook for this pair.

GBP/USD pulls back from key resistance

GBP/USD has managed to recover a significant amount over the course of the week, with the pair moving into the key $1.40 handle.

While the price has initially turned lower from that resistance point, the pullback has taken us into trendline support. With that in mind, there is a good chance we see the bulls come back into play before long. Alternatively, a break below the $1.3845 level would be required to bring a fresh bearish view for this pair.

USD/JPY breaks higher from consolidation phase

USD/JPY has finally broken from its recent consolidation phase, with the pair looking likely to continue its impressive uptrend from here.

That uptrend should bring a strong move higher from here, with a decline through the recent swing low of ¥108.35 required to negate that bullish outlook.

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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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