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 fall while USD/JPY tries to continue rally

More losses look likely for EUR/USD and GBP/USD, while USD/JPY tries to keep moving higher.

EUR/USD rolls over and heads lower

The rally yesterday for EUR/USD to $1.122 was followed up by a steep drop, and then the subsequent recovery to $1.118 has turned lower.

Further declines target $1.109 and $1.1055, the low from Friday. This latter level is the higher low after the February surge, so if this is lost then a deeper retracement seems likely. A more bullish view requires a move above $1.119 and then $1.125.

GBP/USD shows no sign of rallying

The downward move here for GBP/USD has been relentless, with no real rebound over the past few days.

Once again we may be about to see the hourly moving average convergence divergence (MACD) roll over from an already low reading, while a possible bounce towards $1.2366 would merely see fresh selling pressure develop. If $1.22 is lost then the August/September 2019 lows around $1.20 come into play.

USD/JPY looks to continue rebound

The rally from last week’s lows continues for USD/JPY, as the price establishes a higher low at ¥105.20 and builds a rising trend.

Further gains target ¥108.30, but if momentum falters below this and then falls below ¥105.50 then more selling may develop. This may target ¥103.00 and then ¥101.70.

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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