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 turn lower

Risk aversion has hit FX markets, with a flight to safety taking place, resulting in swift reversals in a number of currency pairs.

EUR/USD break higher suffers sharp reverse

A revival in the US dollar resulted in EUR/USD’s bounce being reversed yesterday, and with the price back below the 50-day simple moving average (SMA) of $1.2154 and daily stochastics rolling over the bearish view has been given a new lease of life, at least in the short term.

In the first instance we have rising trendline support from the February lows that may provide support, and then below this the 100-day SMA at $1.202. A move back above $1.22 negates this bearish view.

GBP/USD drops for a second day

The selling in other markets has hit GBP/USD, wiping out most of the move of the past week that carried the price to $1.42.

Further declines now seem likely, towards the rising 50-day SMA at $1.37, bringing the price back to this key zone that provided some volatility on the way up.

USD/JPY reverses from higher high

The USD/JPY price has pulled back from its latest higher high, leaving the uptrend firmly in place.

Further declines would target ¥105.50, the 200-day SMA, and then down to ¥105.00 and the low from earlier in the week. A bounce back above ¥106.40, around yesterday’s highs, would put the buyers firmly back in charge, but for now we will have to watch to see if there is any recovery from the early weakness, or whether more losses are on the way.

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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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