CFDs are complex instruments. 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. CFDs are complex instruments. 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 and GBP/USD move higher as USD/JPY heads down

Dollar weakness continues to provide an opening for EUR/USD and GBP/USD to rally, as USD/JPY sustains further losses.

EUR/USD intraday higher high established

A short-term rebound continues to gather pace, with EUR/USD pushing back towards recent highs at $1.1374, having produced a higher high in early trading.

We look for a potential retracement towards $1.127 that will create a higher low for additional or new long positions, with this bullish view negated if the price drops back towards $1.124.

GBP/USD recovers to Friday peak

A more modest bounce here has seen GBP/USD return to the 26/29 November peak at $1.336.

Losses have stabilised for now around $1.33, although we have yet to see any bullish divergence on hourly stochastics. We look for a continuation of gains towards $1.339 and a new higher high, and await a possible higher low as a sign that the bullish view is gathering strength.

USD/JPY slumps below Friday low

The fall below the 26 November low hands the initiative to the sellers, with a USD/JPY bounce back towards ¥113.40 providing a lower high and a better risk-reward dynamic than at current levels.

A move back above ¥114.00 would be needed to put the buyers back in charge.


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