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 move lower as USD/JPY bounces from support

Signs of risk aversion appear to be growing, as EUR/USD and GBP/USD both continue to fall.

EUR/USD continues downward move

EUR/USD has pushed steadily lower over the past week, with the rally into Tuesday’s session resolving into another downward move.

A small overnight bounce towards $1.126 has started to turn lower and with stochastics on the hourly chart rolling over from elevated levels, a fresh push lower could be in the offing. $1.12 is the first target, and below this a lower low is created. A rally through $1.125 is needed to provide a more bullish view.

GBP/USD drops in early trading

GBP/USD has come under pressure in early trading, as the drift lower overnight threatens to turn into something bigger.

$1.245 becomes the first target, and below this $1.238 comes into view. Bulls will need to push the price on above $1.2616 to clear trendline resistance from last week’s highs.

USD/JPY holds support but still in narrow range

For the second time in a week, the USD/JPY pair has been able to bounce from ¥106.70.

If this continues to hold then bulls need to push on through ¥107.60, which marked the peak throughout the past week. A break in either direction will provide the longer-term signal for a bigger move either higher or lower.

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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