EUR/USD, GBP/USD and USD/JPY expected to weaken further
EUR/USD, GBP/USD, and USD/JPY expected to weaken further, with risk-off sentiment taking hold after a muddled US election outcome.
EUR/USD weakens once again despite recent gains
EUR/USD has tumbled off the back of an election which could ultimately end in a host of legal battles. The risk-off sentiment that has subsequently started to take hold has brought about a fresh move lower for this pair.
That has taken the pair back into a fresh three-month low overnight, with the price starting to tick higher since then. As such, while we could see further short-term gains, the wider bearish picture remains in play unless we see a break through the $1.1771 overnight high.
GBP/USD falls back towards key support
GBP/USD has seen significant losses from the 61.8% Fibonacci resistance level of $1.3174. While we had seen the pair rise into the US election, we have since seen a risk-off move into the dollar to spark downside for the pair.
A break below the $1.2855 level would bring about a fresh bearish signal for this pair, following a period of strength that lasted most of October. As such, the outlook for GBP/USD will be determined by whether we see a break below the $1.2855 level or not.
USD/JPY at risk of further downside after rally into trendline
USD/JPY has been gaining ground over the course of the past week, with the pair pushing towards into a confluence of trendline and Fibonacci resistance.
That ¥105.34 level is going to be crucial from here, with the wider bearish trend expected to come back into play once again. A break through the ¥105.75 level would be required to negate that bearish outlook.
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