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 and GBP/USD still in bullish form, as USD/JPY edges higher

The bounces in EUR/USD and GBP/USD seem set to continue, while USD/JPY is looking to recover recent losses.

Transcript

EUR/USD surge intact

While EUR/USD edged back yesterday, the bullish thrust of the last two days of last week remains intact, having firmly cancelled out the bearish view with the recovery back above $1.20 and $1.21.

Further gains need to clear $1.22, a key area of resistance since the beginning of the year, and would then open the way to the $1.235 highs from the end of 2020. Sellers will need to find a way to drive the price back below $1.205 to suggest that a reversal is in play, but for now the buyers are firmly in charge.

GBP/USD in full rally mode

GBP/USD’s surge over the previous two sessions has left investors scrambling for a fundamental reason. But, on a price basis, the breakout above $1.40 restores a bullish view and arguably brings the March-May consolidation to an end, reviving the uptrend.

The February high above $1.424 comes back into view, and elevated stochastic readings point towards strong bullish momentum. The bearish view has been put on ice for the time being, and will only be revived with a move back below $1.39.

USD/JPY attempts to rebound

USD/JPY is doing its utmost to recover recent losses and restore the bounce from late April.

Further gains target ¥109.50, and a move above this would certainly put the bulls back in charge. Until then, the picture is more mixed, and sellers will want to reverse the bounce from Monday and push the price back below ¥108.50.

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.