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. 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, GBP/USD, and USD/JPY see dollar take a breather

EUR/USD, GBP/USD and USD/JPY reverse after dollar dominance, but will it last?

​EUR/USD slumps into two-month lows

EUR/USD has dropped into a two-month low following a head and shoulders breakdown earlier in the week.

The pair has been extending those losses since breaking below that $1.2059 support level. That bearish picture holds for now, with a move through the $1.2050 swing high required to negate this short-term downtrend.

GBP/USD rebounds into deep retracement zone

GBP/USD has managed to regain ground after the wedge breakdown seen earlier in the week. While price has broken up through trendline resistance, there is a good chance we see this wider Fibonacci retracement zone come into play.

Ultimately the wedge breakdown does raise the risk of a more protracted pullback. Thus it makes sense to watch for a rise through the $1.3858 level to resume the wider bullish trend. Until then, watch for whether price respects of break the $1.3712 resistance level.

USD/JPY starts to reverse after latest leg higher

USD/JPY is in retracement mode after a period of gains that took the pair into the highest level since mid-November.

With a clear uptrend in play here, the current decline looks likely to provide a retracement phase before we move higher once again. That view holds unless we see price break below the ¥104.97 swing-low.

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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