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 USD/JPY head lower, as GBP/USD consolidates

EUR/USD and USD/JPY head lower, while GBP/USD consolidates above key support.

EUR/USD breaking lower once more following German court ruling

EUR/USD saw sharp losses yesterday after a German constitutional court ruling signaled likely future battles with the European Central Bank (ECB) over their quantitative easing (QE) programme. This is likely to undermine the euro as we go forward, with further downside looking likely.

With the price falling below $1.0826 support this morning, it is likely that we will see further downside from here, with a bearish outlook in play unless we see a break through the $1.0857 resistance.

GBP/USD failing to muster recovery thus far

The GBP/USD downside has taken us close to a notable support level at $1.2389, with trendline support providing support throughout recent trading days.

With the price falling below that trendline, there is a chance we could start to see another move lower from here. However, it makes more sense to look for a break through either $1.2484 (bullish) or $1.2389 (bearish) to provide a more reliable buy or sell signal for this pair.

USD/JPY breaks key support, with further downside likely

USD/JPY managed to break below the ¥106.36 support level yesterday, bringing lows not seen since mid-March. With the pair moving higher this morning, it looks likely we are looking at another bearish retracement.

As such, it makes sense to look for bearish positions unless the ¥106.62 swing high is broken. With that in mind, the 61.8% and 76.4% Fibonacci retracement levels look attractive for shorts (¥106.46-¥106.52).


The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.