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 USD/JPY head lower, as GBP/USD consolidates

EUR/USD and USD/JPY head lower, while GBP/USD consolidates above key support.

EUR/USD breaking lower once more following German court ruling

EUR/USD saw sharp losses yesterday after a German constitutional court ruling signaled likely future battles with the European Central Bank (ECB) over their quantitative easing (QE) programme. This is likely to undermine the euro as we go forward, with further downside looking likely.

With the price falling below $1.0826 support this morning, it is likely that we will see further downside from here, with a bearish outlook in play unless we see a break through the $1.0857 resistance.

GBP/USD failing to muster recovery thus far

The GBP/USD downside has taken us close to a notable support level at $1.2389, with trendline support providing support throughout recent trading days.

With the price falling below that trendline, there is a chance we could start to see another move lower from here. However, it makes more sense to look for a break through either $1.2484 (bullish) or $1.2389 (bearish) to provide a more reliable buy or sell signal for this pair.

USD/JPY breaks key support, with further downside likely

USD/JPY managed to break below the ¥106.36 support level yesterday, bringing lows not seen since mid-March. With the pair moving higher this morning, it looks likely we are looking at another bearish retracement.

As such, it makes sense to look for bearish positions unless the ¥106.62 swing high is broken. With that in mind, the 61.8% and 76.4% Fibonacci retracement levels look attractive for shorts (¥106.46-¥106.52).

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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