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 drops back as GBP/USD and USD/JPY rally

USD/JPY has seen a huge move to the upside, challenging the ongoing downtrend once more, while EUR/USD falls back from Monday’s highs and GBP/USD keeps pushing higher.

EUR/USD falters after hitting $1.19

EUR/USD rallied to $1.19 yesterday before dropping back, but the overall recovery remains in place.

Further gains will need to see a move above $1.1917 to signal that a break to the upside is now firmly in play, however, or the current range between $1.16 and $1.19 will prevail and a turn lower becomes a distinct possibility.

GBP/USD pushes to new higher high

The volatile uptrend continues here, as GBP/USD shakes off last week’s swings to push towards $1.32 and a new high in its upward move from late September.

A close above $1.32 leaves the price targeting the August peak towards $1.35. A reversal below $1.31 increases the possibility of a substantial retracement towards rising trendline support.

USD/JPY surges to 50-day SMA

Yesterday saw the price of USD/JPY surge from a lower low near ¥103.00 back to the 50-day simple moving average (SMA) of ¥105.26.

This return towards trendline resistance may mark a bigger shift, given the speed and rapidity of the move, but a rally through ¥106.00 would still be needed to break the sequence of lower highs seen in recent months.

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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