CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

EUR/USD and GBP/USD weaken amid dollar strength, while USD/JPY falls into support

Dollar strength returns to send EUR/USD and GBP/USD lower, while USD/JPY weakens back into a key confluence of support.

EUR/USD falls back into near-term support

EUR/USD has been on the slide once again following a rise in the early part of the week. That previous rise looked to bring yet another retracement move within a recent downtrend.

With that in mind, it looks likely that we will see further weakness going forward, with a beak below $1.1807 required to strengthen that bearish story. As such, a short-term downtrend remains unless the price pushes through the $1.1975 level, with a break below $1.1807 required to signal the beginning of another leg lower from here.

GBP/USD heading lower from Fibonacci resistance

GBP/USD is also on the back foot after its latest retracement, with the rally into 61.8% Fibonacci resistance subsequently bringing about a fresh leg lower for the pair.

We are yet to create a new lower low, yet a move back below $1.3731 would bring about a fresh sign that this downtrend is alive and well. Ultimately, we will expect the downtrend to remain in play unless the price breaks up through the $1.40 handle.

USD/JPY falls back into key confluence of support

USD/JPY has been on the slide since Friday’s high, with the pair falling back into a key confluence of support. That meeting point of both trendline and horizontal support (¥110.41) brings about a key crossroad for this pair.

With the stochastic pushing up out of oversold territory, there is a chance we could see the bulls come back into play here. As such, keep an eye out for this pair, given the potential to reverse upward or break out from its recent uptrend.


This information has been prepared by IG, a trading name of IG Markets 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.

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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.