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 gains ease, while USD/JPY breaks support

Dollar weakness has seen EUR/USD and GBP/USD rise, while USD/JPY weakens. Can these moves persist or will the Fed help bolster the greenback?

EUR/USD comes under pressure from Fibonacci resistance

EUR/USD managed to surge into the 61.8% Fibonacci resistance level yesterday, in a move that broke out of the hourly trend and instead seems to have kicked off another wider retracement as evident on the four-hour chart. That wider trend of lower highs remains in play unless we see a break through the $1.0991 peak from mid-April.

Given the respect of the 61.8% Fibonacci retracement ($1.089), there is a chance we could simply head lower from here, with a break below $1.0809 adding credence to that idea. However, there is also a possibility we could rise into the 76.4% retracement at $1.0923. In either case, a bearish outlook is in play unless we see a break through $1.0991.

GBP/USD continues its ascent, but resistance lies ahead

GBP/USD has been on the rise since finding Fibonacci support at $1.228 last week. With that pair moving into a deep retracement zone, there is a possibility we could see some downside if the price starts to break from this current intraday rise.

As such, a break below $1.2404 could start to see the pair reverse lower once again. Until then, it’s a case of seeing whether this rally has enough juice left to break through the 76.4% level or not. Should that occur, we could be looking at a continuation break through $1.2647.

USD/JPY breaks into fresh one month lows

USD/JPY managed to break below the crucial ¥106.92 support level yesterday, bringing a new one-month low. That is likely to bring further downside before long.

With the directional bias now clearly established, bearish positions are preferred. A short-term rise is possible given recent declines, yet a bearish outlook remains in play irrespective of whether that happens or not. A break through the ¥108.08 level would be required to negate this bearish outlook.

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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