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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 and GBP/USD move lower as USD/JPY bounces from support

Signs of risk aversion appear to be growing, as EUR/USD and GBP/USD both continue to fall.

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EUR/USD continues downward move

EUR/USD has pushed steadily lower over the past week, with the rally into Tuesday’s session resolving into another downward move.

A small overnight bounce towards $1.126 has started to turn lower and with stochastics on the hourly chart rolling over from elevated levels, a fresh push lower could be in the offing. $1.12 is the first target, and below this a lower low is created. A rally through $1.125 is needed to provide a more bullish view.

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

GBP/USD drops in early trading

GBP/USD has come under pressure in early trading, as the drift lower overnight threatens to turn into something bigger.

$1.245 becomes the first target, and below this $1.238 comes into view. Bulls will need to push the price on above $1.2616 to clear trendline resistance from last week’s highs.

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

USD/JPY holds support but still in narrow range

For the second time in a week, the USD/JPY pair has been able to bounce from ¥106.70.

If this continues to hold then bulls need to push on through ¥107.60, which marked the peak throughout the past week. A break in either direction will provide the longer-term signal for a bigger move either higher or lower.

USD/JPY price Source: ProRealTime
USD/JPY price Source: ProRealTime

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