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 rallies, along with GBP/USD, but USD/JPY falls back

There is no sign of a reversal lower in EUR/USD, while USD/JPY keeps falling.

EUR/USD climb continues

EUR/USD has returned to the $1.20 area, and has also managed to move back above the 50 day simple moving average (SMA) at $1.1963.

The rebound shows little sign of slowing, and a break back above $1.20 would reinforce the view that a renewed move higher is beginning. Sellers will be on watch for a reversal back below $1.195 that could spark a renewed move lower and breathe new life into the pullback from the January highs.

GBP/USD attempts to rally

The small rebound of GBP/USD from the lows of last week continues, but without much enthusiasm it seems.

The ongoing downward channel remains in place, which means a move towards $1.385 could hit resistance and be followed up by a turn lower. A break above $1.387 would provide a more bullish view and open the way to $1.40.

USD/JPY continues its poor run

USD/JPY has shown that the dollar weakness has continued throughout the week, with no sign of a reversal of the lower intraday highs that have dominated since the end of March.

This short-term weakness thus seems set to continue, unless and until the price begins a recovery that will see a new intraday higher high and is followed up by bullish crossovers in stochastics and moving average convergence/divergence (MACD).

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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