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 still rallying, as GBP/USD and USD/JPY drop back

While EUR/USD continues to climb in the wake of the ECB meeting, GBP/USD is slipping lower and USD/JPY has now moved into a ranging phase.

EUR/USD still in uptrend

We have seen EUR/USD establish a lower high, dropping back after a sharp bounce ahead of yesterday’s European Central Bank (ECB) meeting. But losses have been contained around $1.138, and a fresh push higher may target $1.142 and short-term trendline resistance.

There is little sign of a bigger change in trend, which would likely need a reversal below $1.132 in the first instance.

GBP/USD looks for support

Having established another lower high, GBP/USD is now testing rising trendline support from Tuesday’s low. This held yesterday, but if we see continued losses, the bearish view will receive further reinforcement.

A more bullish view needs to see the price recover above $1.26 and then take out trendline resistance around $1.262.

USD/JPY falters at resistance again

Despite the rebound from ¥106.70 for the third time in just over a week, the best that can be said for USD/JPY is that the downtrend from the beginning of the month has now moved into more of a range-bound phase.

Dips towards ¥106.70 have found buyers but gains have run out of steam some 70 points higher. For the moment, this range looks to be the way to look at USD/JPY, with a break higher or lower needed to establish, or indeed re-establish, a trend.

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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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