CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Dollar weakness drives EUR/USD and GBP/USD upside, while USD/JPY continues to drift lower

Dollar weakness continues, with EUR/USD and GBP/USD on the rise, as USD/JPY drifts lower.

EUR/USD rallies into major confluence of resistance

EUR/USD has managed to push higher once again on Friday, with the pair driving out of its recent retracement phase.

However, that rally has taken us into a key resistance zone, with the March peak of $1.2113, 76.4% Fibonacci resistance, and prospective descending trendline all converging around this area. With that in mind, todays outlook will depend on the ability or inability to break through this zone.

GBP/USD continues to build from 61.8% support

GBP/USD has been showing signs of a potential bullish resurgence, with the recent rally into the $1.40 handle raising expectations over forthcoming price action. That raises the likeliness that the recent decline is simply a retracement before we head higher once more.

With price turning higher from a confluence of the 61.8% Fibonacci retracement and 200 simple moving average (SMA), there is a good chance we continue to push higher from here. However, we would ultimately need to break below $1.3716 to negate the idea that we could be on the cusp of a bullish resurgence

USD/JPY continues to drift lower after bearish break

USD/JPY managed to break below the crucial ¥108.34 support level last Monday, and we have seen the pair grind lower ever since.

While the downtrend may not be the most inspiring move, it has been very consistent thus far. As such we are likely to see this bearish pattern continue its decline as long as we do not break through the ¥108.14 swing high established on Friday.


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.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.