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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.

EUR/USD, GBP/USD and USD/JPY turn lower after recent gains

EUR/USD, GBP/USD and USD/JPY turn lower after recent gains, but will we ultimately reverse higher once again?

EUR Source: Bloomberg

​EUR/USD breaking lower after recent rally into key resistance

EUR/USD has started to reverse lower, following a period of strength that took the pair up into the key $1.1908 resistance level on Friday.

However, the subsequent move lower has taken us back below both $1.1855 and $1.1834 support, bringing expectations of further weakness. That bearish short-term view holds unless the price rallies up through $1.1885 resistance.

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

GBP/USD falls back below Fibonacci support

GBP/USD has also been on the back foot, with the price turning lower from a confluence of $1.3888 horizontal resistance and the 76.4% Fibonacci resistance level.

A break below the $1.3731 level would certainly bring greater confidence in this potential bearish turnaround following a move below trendline and Fibonacci support.

However, until that happens, there is still a chance this is simply a retracement phase within a GBP/USD recovery.

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

USD/JPY turning lower from key resistance level

USD/JPY has been on the rise over the start of the week, with the price rising into the peak of ¥110.40 established a week ago. This builds a picture of a potential bullish breakout coming into play following a symmetrical triangle consolidation period.

While we are looking at a potential move lower in a bid to continue this consolidation phase, there is a growing case that we will see the price break higher before long. A rise through ¥110.42 brings greater confidence in such a move. ​

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

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