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, GBP/USD and USD/JPY all moving higher in early trading

Forex markets have seen an increase in risk appetite, with funds moving from safe haven currencies.

EUR/USD rebounds after Monday’s fall

Losses yesterday stabilized the EUR/USD price at the 100-day simple moving average (SMA) at $1.1137, with a dip towards $1.1115 finding buyers.

If this continues to hold then a push back to $1.1175 and the recent double-top seems possible, but a breakout is needed to establish a broader move higher. A failure to hold gains today would bring the $1.18 lows of last week into play.

GBP/USD gearing up for break higher

Rising trendline support from the 24 October low and a turn higher for both hourly stochastics and moving average convergence/divergence (MACD) suggest GBP/USD is poised to push higher after retreating over the past two sessions.

A fresh move higher targets $1.2972 and then $1.3014, with both being near-term levels to watch. Below $1.287 the pair would test $1.28, with lower highs marking fresh selling opportunities.

USD/JPY targets ¥109.00 again

USD/JPY has rebounded from the low seen last week, but now it needs to push on above ¥109.00 to avoid the impression that this level remains unbreakable. A daily close above this level provides the pair with a further bullish dimension, opening the way to ¥109.55 and ¥110.35.

A close below ¥108.00 would break rising trendline support from the August low and suggest a more bearish view is back in play.

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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