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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 stay side-lined

​​Outlook on EUR/USD, GBP/USD and USD/JPY during Fed blackout period.

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​​​EUR/USD continues to be side-lined below the $1.10 mark

Last week EUR/USD traded in a tight range below the $1.10 mark which continues to cap on Monday morning as investors look to the German Ifo Business Climate report and what it may say about that country’s economy.

​While the $1.10 level caps, a slip back towards the March-to-April uptrend line at $1.0954 may ensue. Below it further minor support can be spotted at the $1.0929 late-March high and also at last week’s low at $1.091, above which it has been range trading since.

​A slip through last Monday’s $1.091 low would target the $1.0832 to $1.0804 mid-February and 10 April lows which are likely to act as significant support, however. Minor resistance above the minor psychological $1.10 mark lies at the $1.1033 February peak. Still further up sits the current April peak at $1.1075, ahead of the January 2022 low and early-March 2022 high at $1.1121 to $1.1122.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD continues to range trade above support

GBP/USD spent last week sideways trading below its ten-month $1.2546 high, made marginally above the early-April high at $1.2525, whilst being propped up by the $1.2368 to $1.2345 mid- to late-April lows and being capped by last week’s high at $1.2474 as the greenback generally appreciated throughout the week on hawkish US Federal Reserve (Fed) comments.

​This week the March-to-April support line at $1.2385 may be revisited with the $1.2368 to $1.2345 zone representing key support for the currency pair’s uptrend. Were the $1.2345 level to give way on a daily chart closing basis, however, a top would be formed with the mid-February high and early-April low at $1.2275 to $1.227 as well as the 55-day simple moving average (SMA) at $1.2204 being back in sight.

​Immediate resistance is seen at Monday’s intraday high at $1.2452, above which sits last week’s high at $1.2474 and the minor psychological $1.25 level. Further resistance comes in at $1.2525 to $1.2546 current April peaks. These levels would need to be exceeded for the next higher May 2022 peak at $1.2667 to be back in the frame.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY stabilises

USD/JPY’s rise from its early-April low at ¥130.64 has taken the currency pair to last week’s high at ¥135.13 before stalling and sliding back towards the 55-day SMA at ¥133.56 as the Japanese inflation rate edged down to a six-month low.

​Since then the cross recovered slightly and trades back in the middle of its one-month uptrend channel.

​Below the 55-day SMA there is no support to speak of until the mid-April low at ¥132.03. Good resistance can be seen between the 15 March and last week’s highs at ¥135.11 to ¥135.13.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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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