Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Dollar expected to weaken in EUR/USD, GBP/USD and USD/JPY

Dollar expected to come under pressure once more, with EUR/USD, and GBP/USD strength likely to be joined by USD/JPY weakness.

Video poster image

​EUR/USD starts to turn higher after overnight declines

EUR/USD has kicked off the week on a somewhat negative tone, with the pair moving lower to give back some of the gains from last week. With the price failing to break beyond the $1.0921 support level thus far, there is a good chance we could resume the recent bullish trend once more from here.

Watch for a break through the 20-mark on the stochastic to provide a signal that momentum is truly gaining on the bullish side of this trade. A break below the $1.0921 level would negate this bullish outlook and signal a wider pullback coming into play.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD pullback could bring bullish reversal

GBP/USD declines seen throughout the final day of the week appears to have set us up for another move lower today, with the price gapping lower and declining into the 200-hour simple moving average (SMA). However, the recent uptrend remains intact given the failure to break below $1.2389 thus far.

With that in mind, there is a good chance we will start to see the bulls come back into play from here, with a break through 20 on the stochastic providing a bullish signal. Conversely, a break below $1.2369 would negate this bullish outlook.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY regaining ground, yet wider bearish trend remains

USD/JPY is starting to regain ground following a period of declines for the pair. With the wider outlook clearly bearish, there is a good chance that the current consolidation is a precursor to further downside.

Nevertheless, if we see the price break through the ¥106.93 level, we could be looking at the heightened likeliness of a wider rise coming into play. Until then, there is a good chance of a move lower, with a break below the ¥106.60 level providing greater confidence of that bearish move coming into play.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

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
  • Take your position
  • 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

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

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.