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 rebound falters, while GBP/USD drops back and USD/JPY holds on to gains

Dollar strength has weighed on EUR/USD and GBP/USD, while USD/JPY continues to consolidate after the surge earlier in the week.

EUR/USD heads lower once again

The EUR/USD rebound has run out of steam, faltering at the 50-day simple moving average (SMA) at $1.2152 on Tuesday.

This lower high does hand the initiative back to the sellers, and brings a move back towards the $1.194 level that was nearly tested last week. Further declines would then bring $1.188 and then the 200-day SMA at $1.1747 into play. Bulls need to get the price back above $1.215 to reverse this view.

GBP/USD suffers a reverse

GBP/USD has edged down for three sessions, but this has only led to the loss of the gains made on Monday.

Further declines could see $1.3711 tested once again, with a drop below $1.378 amplifying the short-term bearish view. A rebound above $1.39 would suggest a new move higher is underway.

USD/JPY back below ¥106

The surge on Tuesday carried USD/JPY to its highest level since early October.

While it then dropped back on Wednesday, the bounce is firmly intact, with higher highs and higher lows created over the past month. Further gains will come with a breakout above ¥106.11, with the bearish view banished unless we see a drop back below ¥105.00 at the minimum.

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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