CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Dollar eases back in EUR/USD, GBP/USD and USD/JPY

The dollar begins to weaken, yet that move could be temporary for EUR/USD, GBP/USD and USD/JPY.

​EUR/USD under pressure within recent rebound

EUR/USD has been attempting to climb back from a sharp decline which took us within close proximity to the all-important 1.1066 level. A break below that point would bring about a confirmation signal that we are heading back into the wider long-term downtrend.

While we have been attempting to regain ground, we have also seen some downside which raises questions over whether this recovery will last. A break below 1.1104 in particular would bring about a more bearish outlook, while a rise back through 1.1147 negates the notion that we could see this market roll over today.

GBP/USD rolling over after rising from support

GBP/USD managed to regain some ground following a decline into trendline resistance this week. A break below the 1.2904 level would certainly provide a more reliable bearish signal for the pair.

Therefore, the question is how we respond to this trendline support, with a break through 1.31 required to bring about a more bullish signal. With that in mind, it is a case of watching for a break through either 1.31 or 1.2904 to gauge where we go from here.

USD/JPY pullback unlikely to last

USD/JPY has drifted lower since Tuesday’s peak, with the pair having surged into a seven-month high after breaking through the key 109.71 resistance level.

That breakout points towards further upside to come, with a break below 109.43 required to negate this bullish picture. As such, this current pullback is seen as a buying opportunity rather than being indicative of a wider reversal coming into play yet.​


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