Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

EUR/USD, EUR/GBP and USD/JPY lower on Ukraine tensions

EUR/USD, EUR/GBP and USD/JPY slip towards support on threat of Russian invasion of Ukraine.

EUR/USD dips to 55-day simple moving average on threat of war in Ukraine

Last week’s EUR/USD three-month spike high at $1.1495 has been swiftly followed by a slide back to the 55-day simple moving average (SMA) at $1.1333, taking the currency pair back towards the middle of its December sideways trading range.

EUR/USD is likely to tumble further towards the early January low at $1.1272 amid rising tensions in Ukraine. Further potential support sits at the $1.1122 mid-February low.

Minor resistance can be found between the late-November and December highs at $1.1382 to $1.1386.

EUR/GBP tumbled to 61.8% Fibonacci retracement

Friday’s EUR/GBP slip through the 55-day SMA at £0.8421 swiftly took it all the way to the 61.8% Fibonacci retracement of the February rally to £0.836 which offered support.

If this level were to be slipped through, the early-January low at £0.8335 would be eyed next, together with the mid-January low at £0.8324. Key support sits slightly further down between the January and early-February lows at £0.8305 to £0.8286.

Resistance is to be seen between the January high and 55-day SMA at £0.8421 to £0.8422.

USD/JPY drops towards two-month support line at ¥114.95

Last week’s USD/JPY rejection by its January high at ¥116.35 has been accompanied by a Bearish Engulfing pattern on the daily candlestick chart which could lead to the two-month support line at ¥114.95 soon being reached.

If slipped through, the 55-day SMA at ¥114.51 would be next in line, together with the early February low at ¥114.16. Further minor support is seen at the 8 December high at ¥113.96 and major support between the mid-to-late January lows at ¥113.48 to ¥113.47.

Significant resistance sits between the January and current February highs at ¥116.33 to ¥116.35.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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