Dollar takes a hit for EUR/USD, GBP/USD and USD/JPY
Dollar weakness looks to be taking hold, with EUR/USD, GBP/USD, and USD/JPY all moving against the greenback.
EUR/USD soars amid month end dollar sell-off
EUR/USD saw a sharp rise yesterday, amid a month-end slump in the dollar. That has taken us beyond the 76.4% Fibonacci level ($1.0923), raising the likeliness of a bullish break through $1.0991.
Overnight weakness has also failed to really take hold so today will be crucial in guiding us for the week ahead. A break through $1.0991 would bring about a more bullish outlook by negating the wider creation of lower highs that have been in play throughout the past two months. As such, that trend does still remain intact, yet the break through the 76.4% level could point towards a bullish break through $1.0991. Should that occur, it would negate the recent bearish trend.
GBP/USD rallies into key resistance
GBP/USD has managed to continue its recent ascent, with the 76.4% support at $1.228 ultimately proving a continuation signal after all.
With the price respecting the $1.2647 resistance level yesterday, we need to see a break through that level to continue this resurgence. Until then, there is a good chance this pullback is a temporary retracement before we head back into that $1.2647 resistance level. With that in mind, another push higher looks likely, with a break below $1.2389 required to bring a more bearish picture once more.
USD/JPY likely to head lower after overnight upside
USD/JPY rebounded overnight, with the pair's price rising back into trendline resistance.
With the price having broken below the ¥106.92 resistance level on Tuesday, there is a good chance that this recent resurgence is merely a retracement before we head lower. With the 61.8% Fibonacci level and trendline resistance holding up, we look likely to turn lower from here. As such, a bearish outlook is in play as we go forward, with a break through ¥108.08 required to negate that view.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
