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 expected to weaken further

EUR/USD, GBP/USD, and USD/JPY expected to weaken further, with risk-off sentiment taking hold after a muddled US election outcome.

EUR/USD weakens once again despite recent gains

EUR/USD has tumbled off the back of an election which could ultimately end in a host of legal battles. The risk-off sentiment that has subsequently started to take hold has brought about a fresh move lower for this pair.

That has taken the pair back into a fresh three-month low overnight, with the price starting to tick higher since then. As such, while we could see further short-term gains, the wider bearish picture remains in play unless we see a break through the $1.1771 overnight high.

GBP/USD falls back towards key support

GBP/USD has seen significant losses from the 61.8% Fibonacci resistance level of $1.3174. While we had seen the pair rise into the US election, we have since seen a risk-off move into the dollar to spark downside for the pair.

A break below the $1.2855 level would bring about a fresh bearish signal for this pair, following a period of strength that lasted most of October. As such, the outlook for GBP/USD will be determined by whether we see a break below the $1.2855 level or not.

USD/JPY at risk of further downside after rally into trendline

USD/JPY has been gaining ground over the course of the past week, with the pair pushing towards into a confluence of trendline and Fibonacci resistance.

That ¥105.34 level is going to be crucial from here, with the wider bearish trend expected to come back into play once again. A break through the ¥105.75 level would be required to negate that bearish outlook.

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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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