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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD holds up better than GBP/USD amid US debt ceiling negotiations

​Outlook on EUR/USD, GBP/USD and USD/JPY amid ongoing US debt ceiling negotiations.

EUR/USD Source: Bloomberg

​​​EUR/USD recovers from near two-month low

EUR/USD's recent decline has taken it to a near two-month low on flight-to-safety flows into the US dollar due to ongoing US debt ceiling negotiations.

​The cross is now trying to stabilise above Thursday’s low at $1.0761, made around the mid-March high at $1.076. Further down sits the 24 March low at $1.0714.

​Resistance sits at the 10 April low at $1.0832, the previous week’s low at $1.0848 low, along the one-month downtrend line at $1.0868 and the 55-day simple moving average (SMA) at $1.0871. While below $1.0871, downside pressure should retain the upper hand.

EUR/USD chart Source:
EUR/USD chart Source:

​GBP/USD remains under pressure amid ongoing US debt ceiling negotiations

​GBP/USD’s two-week descent has last week taken it to marginally above the $1.2387 to $1.2345 mid- to late April lows and 55-day SMA which this week should offer support.

​Support below $1.2345 sits at the mid-February high and early April low at $1.2275 to $1.227. ​In case of a minor bounce being seen on Monday, the $1.25 region may cap.

​Only a currently unexpected bullish reversal, rise and daily chart close above last Wednesday’s $1.2546 high would put the late April high at $1.2584 back on the map.

GBP/USD chart Source:
GBP/USD chart Source:

​USD/JPY retraces lower from its six-month high

​After six consecutive days of gains, USD/JPY last week topped out at ¥138.74, and this week is likely to revisit the 200-day SMA at ¥137.11.

​If slid through, the ¥135.13 to ¥134.77 early January, mid-March and mid-April highs may also be back in view.

​Immediate resistance is at the ¥138.17 December peak.

USD/JPY chart Source:
USD/JPY chart Source:

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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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