EUR/USD, GBP/USD and USD/JPY volatile after Iranian airstrike
EUR/USD, GBP/USD and USD/JPY volatility heightened in the wake of an Iranian attack on US airbases.
EUR/USD slumps into notable support level
EUR/USD has continued its downturn, with the pair heading back into the $1.1125 support level established on Friday.
The uptrend evident throughout the past three months remains in place unless we see a break below the $1.1067 support level. However, a decline below $1.1125 level would certainly raise the likeliness that this is the beginning of the wider bearish reversal in line with the long-term downtrend evident throughout recent years. Thus, today will be dominated by the question of whether $1.1125 will be broken or not, with the $1.1107 Fibonacci support level providing the next level of note below that threshold.
GBP/USD struggles to regain ground amid recent volatility
GBP/USD has failed to really gain any directional traction this week, with market volatility providing a relatively unstable environment for the dollar.
Nevertheless, the bullish trend remains from the past few months, and that signals a high likeliness of further upside to come. Watch out for a break through $1.3212 to bring about a more confident bullish outlook for the short term.
USD/JPY rebounds after Iranian-led decline
USD/JPY saw a sharp move lower overnight, following an Iranian attack on two US airbases. However, the reality of that attack has significantly lessened that impact, with zero casualties and easing fears over a US response.
That rally we have since seen takes the price back towards yesterday’s peak of ¥108.63. A rise through that level would provide a more bullish short-term view as the pair retraces the wider sell-off from ¥109.71. However, until that happens there is a good chance we will see another move lower to continue the current trend of lower highs and lows.
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
Live prices on most popular markets