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 continue to push higher

EUR/USD, GBP/USD and USD/JPY on the rise, with dollar weakness failing to transmit against a weakening yen.

EUR/USD rising towards confluence of resistance

EUR/USD has been regaining ground over the course of the week, with the pair pushing towards a confluence of trendline resistance and the $1.164 swing high from 4 October.

That zone represents a key area to watch for the day ahead, with the potential for another turn lower from here. A push through $1.164 brings expectations of a rise back towards the $1.1667-$1.1701 resistance zone.

GBP/USD turning upwards as it pushes up towards key resistance

GBP/USD managed to break up through 76.4% Fibonacci resistance at $1.367 yesterday, with the pair pushing towards the $1.375 swing high from late September. This points towards a potential retracement of the wider selloff from $1.3913 coming into play.

With the $1.3721 and $1.375 zone in play today, there is no guarantee we will move towards the wider $1.3794 retracement level. As such, watch for whether we can break this near-term retracement zone as a sign of a wider rebound. However, the downtrend does still remain relevant unless the price breaks up through $1.3913 resistance.

USD/JPY continues to drive higher

USD/JPY has pushed higher once again today, with the pair trading at the highest level since late-2018.

The ability to remain within an intraday trend of higher lows is key here, with a break back below ¥113.21 support required to bring a more neutral view. Given the recent 76.4% pullback, any near-term downside looks like a potential retracement and buying opportunity unless we take out the ¥113.21 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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