EUR/USD, GBP/USD and USD/JPY declines likely to continue
EUR/ USD, GBP/USD and USD/JPY decline, with further downside looking likely.
EUR/USD declines below long-term trendline
EUR/USD saw a sharp leg lower on Wednesday, with the pair declining below a key descending trendline of support. That raises the possibility of a wider bearish breakdown for the pair.
With the price on the rise, it looks like we are seeing a retracement, with a break through $1.1162 required to provide a more positive outlook. Until that happens, there is a chance we will see another leg lower before long.
GBP/USD consolidates after latest leg lower
GBP/USD is consolidating as we head into the US jobs report today. The prospect of a no-deal Brexit has been hitting the pound of late, and there is likely to be further downside to come.
As such, any rebound would likely provide us with a retracement of the $1.2249 decline, with a rally through that peak required to bring about a more bullish picture. Until then, the bears look likely to return before long.
USD/JPY slumps into key support
USD/JPY has turned sharply lower from trendline resistance in the second half of the week, with the yen coming into prominence over recent days. This has taken us into the ¥106.77 support level from late June. Given the sharp declines seen into this area, there is a chance that we could see a rebound over the short term.
It all comes down to how the pair reacts to this support level, with a break below providing a bearish continuation signal. However, with dollar volatility around the corner (non-farm payrolls), continued trade above that ¥106.78 level could provide us with a potential area to rebound from. That being said, given this wider breakdown, further downside looks likely in the end and we simply have to discern whether a rebound is come our way today or not.
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.
