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 rally as USD/JPY stalls

Dollar weakness continues to drive gains for the euro and sterling, but USD/JPY’s attempts to make headway have been stymied again.

​​EUR/USD powers higher

EUR/USD's climb has seen it return to, and move above, the upper bound of the descending channel.

As we noted earlier in the week, the buyers remain firmly in control, with the bullish view reinforced by Wednesday’s push higher. The next targets to the upside are the July and then June peaks at $1.19 and $1.1975 respectively.

GBP/USD continues its recovery

Gains with GBP/USD have carried the price above trendline resistance from late July, although with the 50-day simple moving average (SMA) at $1.3808 now crossing below the 200-day SMA ($1.381) the view is shifting inexorably towards a bearish view.

A renewed decline heads towards $1.36. Recent gains this week have stalled at $1.3802, so a move above this short-term high is likely to spark further upside.

USD/JPY struggles to push higher

Hopes of a decent move higher yesterday were dashed for USD/JPY as the bounce hit a wall of selling at ¥110.40 as previous rallies this last week have done.

Further gains head towards ¥110.50, the vital area of resistance from July and into early August. For now, the uptrend of August remains intact.


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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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