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 pause after recent gains

Gains in key FX pairs have stalled so far this week, although we have not seen much in the way of downside either for the time being.

EUR/USD looks to move higher

Buyers drove the EUR/USD to a two-week high at $1.134, through the area of resistance around $1.13.

While the price has dropped back, we would look for a higher low to be created above $1.124 that will then allow the pair to continue its move higher, through $1.134 and on to a new higher high. A reversal below $1.124 brings the support zone around $1.12 back into play again.

GBP/USD holds on to recent gains

GBP/USD has drifted sideways over the past week, but has not seen much in the way of downside even as it remains unable to push beyond $1.25.

If the price reverses below $1.24, the more bearish view will begin to gain some traction, potentially bringing $1.225 into view. Alternatively, a renewed move higher and through $1.255 would clear previous peaks over the past month and suggest a resumption of the break higher from last week.

USD/JPY fails to move higher

USD/JPY continues to spin around the ¥107.40 level, unable to resume the march higher of late June.

However, like cable, the price has fought hard to avoid much downside. If the price clears ¥107.70, then another push towards ¥108.00 and higher may develop. A move back below ¥107.20 would revive the bearish view and open the path to ¥106.80 and ¥106.20.

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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