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 and GBP/USD rally while USD/JPY slumps in wake of Powell testimony

Fed chairman Jerome Powell has cleared the way for a rate cut this month, and his dovish testimony has pulled the rug out from underneath the dollar.

EUR/USD rebounds from $1.12

EUR/USD has rallied from $1.12, finding support in this area as the dollar weakened following Federal Reserve (Fed) chair Jerome Powell’s testimony. Further gains above $1.13 reinforce the bullish view and open the way to $1.14.

A bearish view would argue that the price, having fallen below trendline support at the end of last week, will now run into resistance at the same trendline. A failure to recover $1.128 would suggest more losses to come.

GBP/USD risks creating a lower high

GBP/USD too managed a strong rally from the low at $1.245 but already the price is running out of steam, and may provide a selling opportunity if a lower high is created around $1.253.

A fresh push lower would target $1.245 in the near term. Further gains head towards $1.259, which was both support and then resistance during the early part of July.

USD/JPY gets Powell-d

USD/JPY has also fallen below rising trendline support, and now a rebound to ¥108.40 may provide a selling opportunity. Further declines head towards ¥107.50.

A recovery above ¥108.40 would clear the way to another push to ¥109.00, the high seen yesterday before Powell’s testimony. At present the low seen overnight is a higher low compared to the early-July low, so some bullish momentum may emerge from here.


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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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