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 head lower, as havens gain ground

EUR/USD and GBP/USD head lower as the dollar strengths, although USD/JPY is also on the back foot as traders favour yen as a haven.

EUR/USD heading lower after recent retracement

EUR/USD is heading back down towards the $1.1772 support level this morning, with the pair building on the recent downtrend to post yet another deep retracement and subsequent sell-off.

With that in mind, we are looking for further short-term downside here, with a break up through the prior swing high of $1.1881 required to negate the ongoing bearish outlook.

GBP/USD breaks support to bring three-month low

GBP/USD has slipped below $1.3731 this morning, with the selling pressure seen on Friday carrying into a new week. That break brings us a fresh three-month low, although we could go further than that if price manages to break below $1.367.

That support level represents the next major threshold to overcome, below which we would be looking t a five-month low. For now, the break below $1.3731 provides a bearish continuation signal, with a rise through $1.391 required to bring a more bullish view.

USD/JPY falls back towards key support

USD/JPY has slipped back into trendline support, following a failed rebound which ended at the 61.8% Fibonacci resistance level. The subsequent pullback has taken us back down into a confluence of ¥109.71 and trendline support.

That looks likely to bring another bout of significant losses if broken. As such, watch for a move back below the ¥109.71 level to provide a fresh bearish outlook for the days ahead. Conversely, a break up through the ¥110.70 level would be required to bring a more positive outlook for the pair.

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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