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 steady ahead of ECB, while GBP/USD rocked by Brexit headlines

EUR/USD has edged up ahead of today’s ECB meeting, and GBP/USD has been hit hard by the ongoing Brexit drama. Meanwhile, USD/JPY has formed a short-term base, pointing towards a potential move higher.

EUR/USD edges up ahead of ECB meeting

EUR/USD has been under pressure over the past few sessions, struggling to make headway and failing to hold the highs of each session.

However downside has been limited, with only a modest drop after the big move higher in November. Further declines would encounter trendline support around $1.20, and then below this the 50-day and 100-day simple moving averages (SMAs) at $1.1852 and $1.1827 come into view. A reversal above $1.215 would mark a new move to the upside.

GBP/USD sees plenty of movement but little overall change

Over the past few sessions the GBP/USD price has rallied to $1.35 and fallen towards $1.32, and been knocked back from both.

A wide range has been established, but the price has been stuck fast for three days now. Lower highs and higher lows have formed a triangle, and we wait for a break from this formation to provide the next indication of a near-term direction.

USD/JPY forms base above ¥103.50

While a move that holds above ¥104.60 continues to elude the USD/JPY pair, a base has been formed above ¥103.50 that hints at a fresh attempt to push higher.

However, bulls need to remember that gains above the 50-day SMA (¥104.71) have proven fleeting in recent months, with the overall downtrend still in place. A move through ¥105.00 brings ¥105.50 into view, the peak from early November.

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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