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 and GBP/USD climb against the dollar, and USD/JPY moves higher again

Some dollar weakness has provided space for EUR/USD to bounce and GBP/USD to continue its recovery, while against the yen the dollar has recouped Wednesday’s losses.

EUR/USD finds strength to bounce

A rebound has finally materialised for EUR/USD, at least in the short term. The first target is the $1.164 swing high from 4 October, and if this is pierced to the upside then buyers may be able to push on towards the 50-day SMA at $1.1722.

This is only a recovery within a longer-term drop however for now, so bulls should be cautious about pushing their luck too far.

GBP/USD rebound continues

A more substantial recovery is in place for GBP/USD, but again it takes place within the run of lower highs and lower lows seen since the summer.

Sellers will be on watch for any resumption of the move down, while buyers will hope the price can clear the 50-day SMA at $1.3721 and then move on above the late September high at $1.375.

USD/JPY recoups losses

There is little scope for weakness for USD/JPY, with buyers already causing the price to recover most of yesterday’s losses.

Gains above ¥113.70 have been difficult to achieve over the past few days, holding back upward progress. A deeper move below trendline support at ¥112.50 would mark a more bearish development.

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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