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 recovering from recent pullback

EUR/USD, GBP/USD, and USD/JPY push higher following period of short-term declines.

EUR/USD attempts to steady itself after latest decline

EUR/USD has been attempting to stabilise itself after yet another phase of weakness that led the pair into a fresh four-month low. The recent decline has taken us into the 76.4% Fibonacci support level at $1.1778, raising questions over whether this could be the beginning of a more protracted move higher.

Thus, we are in fact at a crossroad of a longer-term uptrend and a multi-month downtrend. As such, watch out for a potential rebound over the near term, although we would ultimately need to see a move through $1.1602 or $1.199 to tell us whether we end the wider uptrend or break this recent decline.

GBP/USD on the rise after latest move lower

GBP/USD is on the rise in early trade, with the pair attempting to regain ground following a pullback in the early part of last week. That recent pullback took us into the 76.4% Fibonacci level, raising a smaller scale example of what we are seeing in EUR/USD.

A break below $1.3566 brings a wider bearish picture into play, while a rise through the $1.4006 ends this recent bearish trajectory to resume the long-term uptrend. For now, the mid-sized rebound points towards the potential for a deeper move even if this is only a retracement phase as the dollar bulls take a breather.

USD/JPY pullback finds support on previous breakout level

USD/JPY managed to break through ¥109.36 resistance on Friday, with the pair hitting a fresh nine-month high in the process.

Notably, that rally ended at the key ¥109.85 peak from June 2020. While the pair has pulled back from that resistance level, we have seen 109.36 hold up as new support. As such, there is a good chance we see further upside from here in a bid to continue the uptrend seen over the course of 2021 thus far. A break back below the ¥108.34 low would be required to negate this bullish trend.

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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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