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 drops back as GBP/USD and USD/JPY rally

USD/JPY has seen a huge move to the upside, challenging the ongoing downtrend once more, while EUR/USD falls back from Monday’s highs and GBP/USD keeps pushing higher.

Transcript

EUR/USD falters after hitting $1.19

EUR/USD rallied to $1.19 yesterday before dropping back, but the overall recovery remains in place.

Further gains will need to see a move above $1.1917 to signal that a break to the upside is now firmly in play, however, or the current range between $1.16 and $1.19 will prevail and a turn lower becomes a distinct possibility.

GBP/USD pushes to new higher high

The volatile uptrend continues here, as GBP/USD shakes off last week’s swings to push towards $1.32 and a new high in its upward move from late September.

A close above $1.32 leaves the price targeting the August peak towards $1.35. A reversal below $1.31 increases the possibility of a substantial retracement towards rising trendline support.

USD/JPY surges to 50-day SMA

Yesterday saw the price of USD/JPY surge from a lower low near ¥103.00 back to the 50-day simple moving average (SMA) of ¥105.26.

This return towards trendline resistance may mark a bigger shift, given the speed and rapidity of the move, but a rally through ¥106.00 would still be needed to break the sequence of lower highs seen in recent months.

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.