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.

EUR/USD, GBP/USD, and USD/JPY all at risk of another turn lower

EUR/USD and GBP/USD are attempting to regain ground, but risk another decline given prior weakness. Meanwhile, USD/JPY is also at risk following a rise into trendline resistance.

​EUR/USD rising from intraday support

EUR/USD has been attempting to regain ground over the course of the past week, following a sharp decline in the wake of the 16 June Federal Open Market Committee (FOMC) meeting. Overnight trade saw the pair fall back into the intraday support level of $1.1919, raising the risk of a fresh bearish turn if we break back below that level.

While we are seeing the price rise from that key support level, we would need to break through $1.1975 to provide a bullish continuation signal. Until then, there is a chance we could start seeing the bears come back into play once again if we break $1.1919 support. For now, keep an eye out for whether the price respects the confluence of 200-hour simple moving average (SMA) and trendline resistance as a gauge of sentiment.

GBP/USD rallies into trendline and SMA resistance

GBP/USD has last been gaining ground in early trade, yet that rise has taken us into a confluence of a descending trendline and 200-hour SMA resistance. The recent Bank of England (BoE)-led decline took the price back down towards the $1.386 swing low, although that level has not been broken as things stand.

Nonetheless, a move through that support level would raise the likeliness of a wider downward turn coming into play for the pair. With that in mind, the question of whether we reverse lower from this confluence of resistance is going to be key in determining whether we continue to move lower towards $1.386 or not.

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USD/JPY turning lower after rally into trendline resistance

USD/JPY has been gradually turning lower after a rally into trendline resistance.

The latest rally saw the price turn lower from the 76.4% Fibonacci resistance level on Friday. With that in mind, further downside looks likely from here, with a rise up through the ¥111.11 level required to bring about a more bullish view.

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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