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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, EUR/GBP down and USD/JPY up following hawkish FED

EUR/USD trades in two-month lows, EUR/GBP slips and USD/JPY rallies post FOMC.

EUR/USD drops to November $1.1186 low post hawkish FOMC statement

EUR/USD’s tumble through its two-month channel support line has taken it all way back down to the November low at $1.1186. Together with the October and November 2019 highs at $1.1179 to $1.1176 it is likely to offer support today.

Medium term the April and May 2019 lows at $1.1111 to $1.1107 are being targeted with minor support on the way down being found at the $1.1168 mid-June 2020 low. For today, resistance can be seen around the early to mid-December lows at $1.1228 to $1.1235

EUR/GBP slides back towards its breached resistance line at £0.8322

EUR/GBP remains short term under pressure and is seen slipping towards the broken resistance line at £0.8322. Earlier today, it found interim support at the £0.8335 early January low. Together with the 11 January trough at £0.8324 these levels are expected to withstand the current bearish pressure.

The cross is thus likely to stay above its £0.8313 to £0.8277 key support region, comprised of the December 2016, April 2017, December 2019 and February 2020 lows. Resistance sits between the November trough and 18 and 21 January highs at £0.8377 to £0.8381.

USD/JPY flirts with its last swing high at ¥115.06 post FOMC

After yesterday’s hawkish The Federal Open Market Committee (FOMC) statement, USD/JPY broke through its one-month downtrend line and rose above the 55-day simple moving average (SMA) which today drove the cross back to its mid-January high at ¥115.06.

Next up is the November peak at ¥115.52, a rise above which would lead to the early January high at ¥116.35 being back on the map. Support can be spotted between the mid-December high, 55-day SMA and breached one-month downtrend line at ¥114.28 to ¥114.16.

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. See full non-independent research disclaimer and quarterly summary.

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