CFDs are complex instruments. 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. 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 driven by a resurgent dollar

EUR/USD, GBP/USD, and USD/JPY see the dollar dominate as markets come under pressure on second wave fears.

EUR/USD reversal in play as dollar comes into focus

EUR/USD looks to have finally turned a corner this week, with the uptrend seen since the June lows now being reversed.

There is a strong chance that this decline will be a retracement of the wider $1.1168-$1.2011 rally, with further downside to come. The four-hour chart highlights this recent reversal in play, with the price attempting to regain ground yesterday.

Further downside looks likely from here, with a break through the $1.1719 level required to signal a wider upward retracement of the decline from $1.1871 coming into play. In any case, the recent breakdown appears to signal an impending period of downside for the pair.

GBP/USD likely to fall further before long

GBP/USD has been on the back foot once more this week, with the pair hitting a two-month low on Wednesday.

While we are seeing the price attempt to arrest those decline since, we are likely going to see further downside before long. As such, a break back below $1.2675 points towards immediate weakness, whereas a rise above $1.2777 raises the likeliness of a short-term upward retracement coming into play. In either case, we would need to see $1.3007 broken to negate the current bearish outlook.

USD/JPY rises into Fibonacci resistance

USD/JPY has been on the rise over the course of the week, with the price coming within touching distance of the 61.8% Fibonacci resistance level overnight.

The wider downtrend does raise the likeliness of a bearish turn before long, with a drop below the ¥105.20 mark bringing about a fresh bearish signal. Until then, this short-term recovery could persist as we move into the deep retracement zone.

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