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 turn lower after recent gains

EUR/USD, GBP/USD and USD/JPY turn lower after recent gains, but will we ultimately reverse higher once again?

​EUR/USD breaking lower after recent rally into key resistance

EUR/USD has started to reverse lower, following a period of strength that took the pair up into the key $1.1908 resistance level on Friday.

However, the subsequent move lower has taken us back below both $1.1855 and $1.1834 support, bringing expectations of further weakness. That bearish short-term view holds unless the price rallies up through $1.1885 resistance.

GBP/USD falls back below Fibonacci support

GBP/USD has also been on the back foot, with the price turning lower from a confluence of $1.3888 horizontal resistance and the 76.4% Fibonacci resistance level.

A break below the $1.3731 level would certainly bring greater confidence in this potential bearish turnaround following a move below trendline and Fibonacci support.

However, until that happens, there is still a chance this is simply a retracement phase within a GBP/USD recovery.

USD/JPY turning lower from key resistance level

USD/JPY has been on the rise over the start of the week, with the price rising into the peak of ¥110.40 established a week ago. This builds a picture of a potential bullish breakout coming into play following a symmetrical triangle consolidation period.

While we are looking at a potential move lower in a bid to continue this consolidation phase, there is a growing case that we will see the price break higher before long. A rise through ¥110.42 brings greater confidence in such a move. ​

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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