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.

EUR/USD and GBP/USD fall but USD/JPY rallies

The dollar is in strong form this morning, rallying against the euro, sterling and the Japanese yen.

EUR/USD edges lower after Wednesday’s losses

EUR/USD suffered heavily yesterday and despite a rebound overnight is slipping lower once again this morning.

Yesterday’s drop carried the price to the support zone around $1.094, where bounces materialised in September, so we may see some bullish momentum develop here. However, the downtrend is firmly in place, and as a result a move below $1.092 would carry the price below this support zone and target $1.085, the low from May 2017.

GBP/USD under heavy pressure

GBP/USD has continued its reversal from $1.25, falling below $1.24 yesterday.

As with EUR/USD, the price rebounded slightly overnight, but is losing ground once again as the longer-term downtrend reasserts itself. Further declines head towards $1.227, and then on towards $1.20. A move back above $1.25 is needed to reassert the bullish view.

USD/JPY recovers its upward momentum

After several days of declines USD/JPY rebounded yesterday, stabilising around the 50-day simple moving average (SMA) of ¥107.06. If this can form a higher low, then a push above yesterday’s high will reinforce the bullish view and take the price on towards ¥108.40.

Bears will want to see a move below ¥107.50 in the short term, to revive the push towards ¥107.00 and revive the pullback that began at the end of last week.


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