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.

EUR/USD and GBP/USD decline, as USD/JPY remains rangebound

EUR/USD and GBP/USD turn lower, with potential bearish breakdowns coming into play. Meanwhile, USD/JPY provides opportunity through its consistent rangebound price action.

​EUR/USD breaks below key support

EUR/USD has managed to break from the wider trend of lower highs and higher lows, with the decline through $1.0768 support providing a bearish breakdown signal.

The short-term trend is clearly bearish and thus it is a case of following that intraday trend. With that in mind, a bearish outlook is in play, with a break through $1.0847 required to negate that view.

GBP/USD rolling over after Fibonacci rebound

GBP/USD has been on the rise since finding support on the 76.4% Fibonacci support level on Tuesday. However, we are seeing the short-term bearish trend come back into play as the pair turns lower from a confluence of horizontal ($1.2408) and Fibonacci (61.8%) resistance.

Ultimately, we need to see the $1.2166 level broken to negate the wider uptrend that has been playing out since the 19 March low. However, with the pair heading lower, a break below $1.2247 goes a long way to signaling the potential for such a critical bearish breakdown.

USD/JPY consolidates as we await a breakout

USD/JPY has been in consolidation mode over the course of the week, with the pair trading within the ¥1.0808-¥1.0728 range. That formation continues to hold, yet the break from it will tell us plenty about where we go from here.

With the pair repeatedly coming back to the ¥1.692 level of support, a downside breakdown would also necessitate a move through that support level to bring a wider bearish view. In any case, until we see a breakout, this range provides us with a relatively consistent trading environment to utilise.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.