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 under heavy selling pressure as GBP/USD and USD/JPY edge higher

It was a tough day for EUR/USD yesterday, which fell to its lowest level in 16 months, while GBP/USD and USD/JPY have made small gains.

EUR/USD slumps below $1.14

EUR/USD continues to plumb new depths for the year, lurching lower yesterday to a level below $1.14 for the first time since July 2020.

The next target to the downside is the $1.124 swing high from the very end of 2019. So far there is no sight of a more bullish short-term move, and even a rally towards $1.16 would still provide the potential for a lower high and a reinforcement of the downtrend.

GBP/USD bounce continues in cautious fashion

Things are looking a touch better here for GBP/USD bulls, although even here the pair is still edging up only from a lower low.

A rebound from here towards the upper bound of the current daily descending channel would see the pair head back towards $1.37. Sellers at present may look for a reversal of the past three sessions of gains, which in this case would see $1.3365 broken to the downside and a firmly bearish leg lower begin.

USD/JPY still targets recent highs

The dollar continues to strengthen overall with USD/JPY, and the pair is slowly recovering from the early November dip below ¥113.00.

A move back towards ¥114.50 is still contemplated, supported by rising stochastics and guardedly bullish price action. A move back to, and then below, ¥113.00 would be needed to negate this view.

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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