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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 and EUR/GBP try to remain above their recent lows, while USD/JPY is taking a breather

Gains have stalled for USD/JPY, while the euro is struggling to make headway against both the dollar and the pound.

​EUR/USD tries and fails to move higher 

EUR/USD has been hovering above the $1.1274 late-December low for the past few days and tried to regain upside momentum yesterday only to fail at $1.1346.  

While below there, downside pressure retains the upper hand with the November-to-December channel support line at $1.1260 remaining in sight. If slid through, support between the 7 and 20 December lows at $1.1237/22 would be in play. Further down sits the November low at $1.1186 which remains in sight. 

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

EUR/GBP attempts to bounce

EUR/GBP is trying to short-term recover from yesterday’s low at 0.8335 but is to soon encounter resistance seen between the October and November lows at £0.8381 to £0.8403 which is likely to cap today. 

A tumble through the current January low at £0.8335 would open the way for the December 2016, April 2017, December 2019 and February 2020 lows at £0.8313 to £0.8277 to be revisited. This area represents key long-term support which is expected to withstand the first test. 

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

USD/JPY eases off in wake of FOMC

USD/JPY is taking a breather for the second day in a row below its 4-year high at ¥116.35, made marginally above the August 2015 low at ¥116.21.  

A rise above the ¥116.21 to ¥116.35 zone would engage the October 2015 low as well as the December 2016 and January 2017 highs at ¥118.06 to ¥118.06.  

Slips should find support between the November high and the one-month support line at ¥115.52-¥115.39. Upside pressure should be maintained while the cross remains above this year’s current low at ¥114.95. 

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