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 all make gains

Risk appetite in the FX space appears to have recovered, with GBP/USD leading the charge, while EUR/USD moves back above the 50-day moving average and USD/JPY recovers after some hefty losses.

EUR/USD resumes its climb

EUR/USD has managed to move on above the 50-day simple moving average (SMA) at $1.2156 once again, clearing last week’s highs and putting the uptrend back on the right track.

Above $1.22 the way to the January highs at $1.235 is much clearer. Short-term rising support from the late-January low helped the pair create a higher low last week, giving it the strength to push higher, so a drop back below $1.203 would negate this and open the path to the January low once more.

GBP/USD rally keeps on trucking

The GBP/USD’s surge to $1.41 comes as due reward for those longs that held on throughout the second half of January, when it seemed upward momentum had stalled entirely.

There seems little to stand in the way of further gains, as the pair targets the 2018 high at $1.43, and little in the way of any bearish price action. The latter would need a drop back below $1.39. which would bring $1.375 into view as potential support.

USD/JPY recovers after sell-off

For the second time in a month, USD/JPY has seen its run higher dramatically knocked back.

Earlier in February this led to a steady recovery to a new higher high, while now there are some stirrings of recovery as the price moves off yesterday’s low. Sellers would need to get the price back below the early-February low around ¥104.50 to provide a more firm bearish view, while from here a rally targets the 200-day SMA at ¥105.50 and then on to ¥106.10.

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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.