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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. 70% 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, EUR/GBP and EUR/JPY bid ahead of ECB rate decision​​​

​​​EUR/USD, EUR/GBP and EUR/JPY bid ahead of the ECB’s anticipated 25 basis point rate cut. ​

EUR/USD Source: Adobe images

​​​EUR/USD finds support

EUR/USD found support slightly below its August 5 high at $1.1009 following Wednesday's US August consumer price index (CPI) release and ahead of today's European Central Bank (ECB) rate decision. Minor resistance above Wednesday's $1.1055 high can be seen around the 22 August low at $1.1098. 

​​A fall through $1.1000 would likely engage the 21 March high at $1.0942. ​For now we stick to our neutral medium-term forecast. 

EUR/USD chart Source: TradingView.com
EUR/USD chart Source: TradingView.com

​EUR/GBP range bound

EUR/GBP briefly rallied to £0.8463 before being rejected by the 55-day simple moving average (SMA) at £0.8465. Further sideways trading is thus at hand.

​​A fall through Wednesday's £0.8423 low would likely engage Friday's low at £0.8412. Below it the June-to-July lows remain to be seen at £0.8398-to-£0.8378. A rise above £0.8465 would be targeting minor resistance at the 19 August low at £0.8509. 

EUR/GBP chart Source: TradingView.com
EUR/GBP chart Source: TradingView.com

​EUR/JPY stabilizes

EUR/JPY seems to have at least short-term levelled out above its ¥154.42 early August low and is seen heading back up again towards its 10 September high at ¥158.64. 

EUR/JPY chart Source: TradingView.com
EUR/JPY chart Source: TradingView.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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