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 fall back towards support

Consolidation phase takes hold for EUR/USD, GBP/USD and USD/JPY, but will support hold to send all three higher?

EUR/USD falls back into key support

EUR/USD has been on the back foot since Wednesday, with the pair dropping back into the $1.1882 support level after a failed attempt to push up through $1.1992 resistance.

A move below this $1.1835-$1.1882 support zone would bring a continuation of the downtrend seen of late. However, it makes sense to await that break below support to expect further downside given the potential for a short-term rebound from this level.

GBP/USD turning higher from confluence of support

GBP/USD weakness has taken us into a combination of horizontal and trendline support this morning.

With the pair starting to regain ground, there is a strong chance we see short-term strength to continue the recent consolidation phase. As such, gains look likely from here, with a break back below the $1.3809 level required to bring about another pullback for the pair.

USD/JPY drifts back into Fibonacci support

USD/JPY has been on the back foot over the course of the past week, with initial Monday gains giving way to a gradual fade lower. That has ultimately taken us into the 76.4% Fibonacci level, at ¥108.58.

A break back below the ¥108.33 level would be required to negate the wider uptrend, pointing towards a more protracted pullback. However, until that happens we are looking at a potential moment where the bulls could come back into play for USD/JPY.

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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