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 look to move higher, as USD/JPY rebounds from Monday’s low

The euro and sterling have both edged up against the dollar, while the buyers have come in to support USD/JPY after yesterday’s sudden and brief dip.

EUR/USD hovers below recent highs

EUR/USD has moved back to the $1.216 zone that marked the high since the end of November.

Once again a small dip has been bought, putting the pair back on an upward course that looks set to challenge $1.2214 and then $1.2413, a level last seen in the first half of 2018. For sellers, a close below $1.206 from last Wednesday could open the path to more downside.

GBP/USD knocked back from recent highs

The GBP/USD pair has bounced back from last Friday’s lows below $1.32, but while it continues to move higher, Monday’s surge above $1.34 brought out the sellers, creating the third long wick to the upside since early December.

This suggests a gloomier near-term outlook, with bulls unable to hold the highs. A close above $1.34 would start to revive a more bullish view, targeting $1.347 in the near-term. Alternatively, sellers need to drive the price below $1.32, and then below the 50-day simple moving average (SMA), to reverse the higher low created on Friday.

USD/JPY rallies from Monday low

USD/JPY has held firm above ¥103.60 since mid-November, and Monday’s dip below this level to ¥103.50 merely confirmed the strength of support, with a quick bounce from this level developing.

However, while buyers can be pleased with this effort, they now need to clear ¥104.60, the upside resistance that has also held since the second half of November. For the time being, the range trade continues.


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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