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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. 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 financial instruments and come with a high risk of losing money rapidly due to leverage. 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 on track for nine consecutive days of gains while EUR/GBP and EUR/JPY recover

​​Outlook on EUR/USD, EUR/GBP and EUR/JPY amid hawkish European Central Bank and as U.S. inflation is significantly slowing down.

EUR/USD Source: Bloomberg

​​​EUR/USD approaches mid-February 2022 low at $1.1280​

EUR/USD seems to be on track for its ninth consecutive day of gains versus the greenback and is fast approaching the 61.8% Fibonacci retracement of the 2020-to-2022 bear market and the mid-February 2022 low at $1.128. Between it and the $1.13 mark the currency pair may lose upside momentum, though.

​If not, the late February 2022 highs between $1.139 to $1.1396 may be reached as well.

​Minor support sits at Monday’s $1.1204 low.

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

​EUR/GBP is breaking through its April-to-July downtrend line

EUR/GBP's recovery from its £0.8504 current July low, last traded in August 2022, has now taken it to above the April-to-July downtrend line at £0.8591. If a daily chart close above this level were to be made, the trendline break would be validated with the £0.8658 late June high representing a possible upside target.

​En route lies the 55-day simple moving average (SMA) at £0.8622.

​Support below the breached downtrend line at £0.8591 comes in at the £0.8584 10 July high. Further down sits the £0.8568 late May low.

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

​EUR/JPY recovers further from last week’s low

EUR/JPY's descent from its late June high at ¥158.00, as Japanese wage inflation unexpectedly rose by twice of what was expected in May and pointed to the Bank of Japan (BoJ) probably having to tighten its monetary policy later this year, has taken it to last week’s low at ¥153.30.

​From there the cross has since recovered somewhat and has risen to Monday’s high at ¥156.34. If overcome, the 30 June low at ¥156.69 may be reached next.

​Slips should find support around the ¥155.13 mid-July high ahead of the ¥154.49 12 July high.

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

This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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