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 at risk after recent gains

EUR/USD and GBP/USD show signs of potential weakness after recent recovery attempts. Meanwhile, USD/JPY is also at risk following a rise into trendline resistance.

EUR/USD struggling to regain lost ground

EUR/USD has been attempting to regain lost ground over the course of this week, with the pair grinding higher since the Monday's lows.

Nonetheless, that rally appears to be struggling to gain momentum. For now, we are yet to see a breakdown in the price, but there is a good chance we will see one before long. A move below $1.1911 would bring that bearish short-term picture into play. Until then, the pair looks likely to continue its gradual grind higher.

GBP/USD weakens after dovish BoE stance

GBP/USD has been losing ground after the Bank of England (BoE) provided a relatively dovish assessment at yesterdays monetary policy meeting.

That difference between Federal Reserve (Fed) and BoE thinking could drive further downside, with a break below the $1.3889 support level bringing the first tentative bearish signal after a period of upside.

USD/JPY weakening around trendline resistance

USD/JPY has managed to rally well from the trendline support that has underpinned the price action over the past two-months. However, we are now back into more overbought levels given the rise into trendline resistance.

That signals the potential for a short-term move lower to continue the pattern. With the price starting to fade, there is a good chance we do see a period of downside from here, with a break below ¥110.66 signalling the beginning of that short-term pullback. Alternatively, a break up through the recent ¥111.11 peak would point towards a potential bullish breakout from this ascending channel.

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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