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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​​EUR/USD, GBP/USD recover from multi-month lows while USD/JPY rallies towards ¥150.00

​​Outlook on EUR/USD, GBP/USD and USD/JPY ahead of Jerome Powell’s speech.

Yen chart Source: Bloomberg

​​​EUR/USD hovers above nine-month low as Q4 begins

Last week the US dollar, yields and oil price saw some minor retracement lower from their lofty heights which gave EUR/USD some breathing space and helped it recover from its $1.0488 nine-month low to last week’s $1.0617 high.

​More important resistance sits between the May low and mid-September low at $1.0632 to $1.0636.

​Last week’s nine-month low was made marginally above major support which consists of the mid-November high, early and December low and January low at $1.0484 to $1.0444.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD remains above six-month low

GBP/USD tries to recover further from last week’s $1.2111 six-month low ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech this afternoon in which he may indicate that another rate hike is needed this quarter.

​The September downtrend channel resistance line at $1.226 together with Friday’s high at $1.2271 represent initial upside targets.

​Above these levels of minor resistance lies the $1.2309 May low and significantly further up meanders the 200-day simple moving average (SMA) at $1.2437. While remaining below it, the medium-term bearish trend remains intact.

​A fall through the September low at $1.2111 would put the minor psychological $1.20 mark back on the cards.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY rises to new 10-month high

USD/JPY has risen to a new 10-month high at ¥149.82 despite Japan quarter three (Q3) business sentiment climbing the highest in five quarters. The cross is getting close to the psychological ¥150.00 mark, though, around which the Bank of Japan (BoJ) might begin to talk about currency intervention to prop up Japan’s currency.

​Above the ¥150.00 level lies last October’s peak at ¥151.94. The July-to-October uptrend line at ¥148.76 should offer immediate support, together with Friday’s low at ¥148.53.

​Below it potential support can be found around the ¥147.87 early September high. Further down lies last Thursday’s low at ¥147.33. While this minor support area underpins, the July to October uptrend remains valid.

USD/JPY chart Source: IT-Fiannce.com
USD/JPY chart Source: IT-Fiannce.com

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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