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 off recent highs

The recent rampant risk appetite has been knocked back over the past 24 hours, although this may only be a temporary development.

EUR/USD still dropping from Friday’s high

The huge appreciation in EUR/USD continues, although we have seen an ongoing pullback from last Friday’s highs.

The uptrend remains firmly intact, and indeed we may see a test of trendline support from the late May lows today. Further losses head towards $1.12, while a breakout above $1.13 breaks downtrend resistance from Friday’s high and reasserts the upward move.

GBP/USD heads towards support

Here too for GBP/USD we are watching trendline support from late May. The price has struggled to maintain forward momentum, with yesterday’s high only just above Friday’s peak.

Horizontal support around $1.2635 would be followed up by $1.259 and then $1.25 in the event of a deeper retracement. Alternatively, a renewed push higher targets $1.275.

USD/JPY looks to find support

The USD/JPY pair has undergone a sharp reversal that mirrors the impressive bounce seen last week.

If the price can hold above ¥107.80, previous key resistance then another push higher may develop, potentially heading towards ¥108.60, and then on to ¥109.60. In the event of further declines, trendline support from the early May lows would come into play around ¥107.60.

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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