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. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

EUR/USD and GBP/USD move lower as USD/JPY bounces from support

Signs of risk aversion appear to be growing, as EUR/USD and GBP/USD both continue to fall.

EUR/USD continues downward move

EUR/USD has pushed steadily lower over the past week, with the rally into Tuesday’s session resolving into another downward move.

A small overnight bounce towards $1.126 has started to turn lower and with stochastics on the hourly chart rolling over from elevated levels, a fresh push lower could be in the offing. $1.12 is the first target, and below this a lower low is created. A rally through $1.125 is needed to provide a more bullish view.

GBP/USD drops in early trading

GBP/USD has come under pressure in early trading, as the drift lower overnight threatens to turn into something bigger.

$1.245 becomes the first target, and below this $1.238 comes into view. Bulls will need to push the price on above $1.2616 to clear trendline resistance from last week’s highs.

USD/JPY holds support but still in narrow range

For the second time in a week, the USD/JPY pair has been able to bounce from ¥106.70.

If this continues to hold then bulls need to push on through ¥107.60, which marked the peak throughout the past week. A break in either direction will provide the longer-term signal for a bigger move either higher or lower.

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


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.