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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​Dollar strength pushes EUR/USD and GBP/USD lower but bolsters USD/JPY back above ¥150​.00

​After weakening in the wake of the Fed decision, the US dollar has revived, causing the euro and sterling to give back some of their recent gains, and lifting the dollar back above a key level against the yen.

USD Source: Bloomberg

EUR/USD weakens as dollar recovers

​The price with EUR/USD has dropped back below $1.07, though the short-term bounce from the October lows is still in place.

​​We may see some support around the $1.067 level, the high from late October, or at the 50-day simple moving average (SMA), that may preserve the bounce and see fresh buying pressure emerge.

​​A move back above $1.07 would help to restore the bullish view and see the price resume its progress towards the 200-day SMA.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD in retreat

​Early trading with GBP/USD on Wednesday saw the price fall back below its 50-day SMA, and back below the early-October highs.

​​Additional declines now target the $1.22 area, and then down towards previously-broken trendline resistance. This may then act as support for the pair, though a close below this and below $1.21 would clearly leave the sellers in charge.

​​Bulls will need a close back above the 50-day SMA that can open the way to another attempt to challenge the 200-day SMA.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY moves back above key level

USD/JPY is back above ¥150.00 once again, clawing back some of the losses from last week.

​​Whether this will bring fresh intervention remains to be seen, but for the moment the buyers are in charge once again. Additional gains continue to target the ¥152.00 level.

​​A close back below ¥149.00 is needed to suggest a short-term pullback is now beginning.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

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