Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

EUR/USD, GBP/USD, and USD/JPY awaiting consolidation break

The dollar is coming under pressure this morning, but how will EUR/USD, GBP/USD, and USD/JPY resolve recent consolidation?

Video poster image

EUR/USD building on rebound from key support

EUR/USD is on the rise in early trade today, with the pair seeking to build on the rebound from $1.199 support yesterday. That level of support represented not only a key March high, but also the neckline of a potential head and shoulders formation building over the past two weeks.

The rise through $1.2076 highlights the resurgence that appears to be building, with a push through $1.2051 needed to further that bullish story. Until then, we remain within a potential reversal zone given the existence of the 76.4% Fibonacci level at $1.2116. Whether we break through $1.215 (bullish) or below $1.199 (bearish) should better inform sentiment for this pair.

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

GBP/USD rising towards trend line resistance

GBP/USD remains within a consolidation phase, with the overnight gains seen in the pair coming as part of a move that has seen price drift lower from the $1.4006 level.

That recent descending channel remains key, with trend line resistance coming into play from here. Ultimately, we will need to see the pair break through either $1.4006 of $1.367 to build a clearer picture of the directional bias.

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

USD/JPY starts to roll over from Fibonacci resistance

USD/JPY has been on the rise of late, with the pair attempting to regain ground lost throughout much of April. That decline took us below ¥108.34, raising the likelihood that this current rally is a retracement and precursor to us heading lower once again.

With the price starting to roll over from the 61.8% Fibonacci resistance level, there is a good chance we are going to see the bears come back into play. A break below the ¥108.89 swing low would raise the likelihood of that bearish break coming into play. Until then, the intraday uptrend remains intact.

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

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

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.