EUR/USD, GBP/USD and USD/JPY all under pressure
Risk aversion is still being felt across forex markets, with little upside for the euro and sterling against the dollar.

EUR/USD weakens again
The EUR/USD price has continued to fall, with no sign yet that a bottom is definitely in, although a possible bullish wedge may have formed.
A rally above $1.10 would help to suggest that the wedge formation has resolved in favour of a move higher, potentially targeting $1.117. Alternatively, a drop below $1.101 revives the downward move and brings $1.099 into play, followed up by $1.088.

GBP/USD still under pressure
Intraday rallies have been short-lived so far, as the GBP/USD price continues to fall.
The next stop appears to be $1.2975, support on 14 January and 20 January, while below this at $1.2955 rising trendline support from August comes into play. Bulls need to break above $1.317 to provide a more optimistic outlook.

USD/JPY struggles around ¥109.00
USD/JPY managed to hold its ground yesterday after the gap lower, but a sudden drop back below ¥109.00 may signal that more downside is to come.
The failure to close the gap is a potential bearish development, with confirmation of this coming with a move below ¥108.70. This would then open the way to ¥107.90 and the lows from early January. Since 22 January, gains have been contained by the 50-hour simple moving average (SMA) at ¥109.14 and so a move above this would be a first step in building a more bullish view.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.

Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices