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 decline, as USD/JPY remains rangebound

EUR/USD and GBP/USD turn lower, with potential bearish breakdowns coming into play. Meanwhile, USD/JPY provides opportunity through its consistent rangebound price action.

​EUR/USD breaks below key support

EUR/USD has managed to break from the wider trend of lower highs and higher lows, with the decline through $1.0768 support providing a bearish breakdown signal.

The short-term trend is clearly bearish and thus it is a case of following that intraday trend. With that in mind, a bearish outlook is in play, with a break through $1.0847 required to negate that view.

GBP/USD rolling over after Fibonacci rebound

GBP/USD has been on the rise since finding support on the 76.4% Fibonacci support level on Tuesday. However, we are seeing the short-term bearish trend come back into play as the pair turns lower from a confluence of horizontal ($1.2408) and Fibonacci (61.8%) resistance.

Ultimately, we need to see the $1.2166 level broken to negate the wider uptrend that has been playing out since the 19 March low. However, with the pair heading lower, a break below $1.2247 goes a long way to signaling the potential for such a critical bearish breakdown.

USD/JPY consolidates as we await a breakout

USD/JPY has been in consolidation mode over the course of the week, with the pair trading within the ¥1.0808-¥1.0728 range. That formation continues to hold, yet the break from it will tell us plenty about where we go from here.

With the pair repeatedly coming back to the ¥1.692 level of support, a downside breakdown would also necessitate a move through that support level to bring a wider bearish view. In any case, until we see a breakout, this range provides us with a relatively consistent trading environment to utilise.

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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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