EUR/USD, GBP/USD, and USD/JPY at risk after recent gains
EUR/USD and GBP/USD show signs of potential weakness after recent recovery attempts. Meanwhile, USD/JPY is also at risk following a rise into trendline resistance.
EUR/USD struggling to regain lost ground
EUR/USD has been attempting to regain lost ground over the course of this week, with the pair grinding higher since the Monday's lows.
Nonetheless, that rally appears to be struggling to gain momentum. For now, we are yet to see a breakdown in the price, but there is a good chance we will see one before long. A move below $1.1911 would bring that bearish short-term picture into play. Until then, the pair looks likely to continue its gradual grind higher.
GBP/USD weakens after dovish BoE stance
That difference between Federal Reserve (Fed) and BoE thinking could drive further downside, with a break below the $1.3889 support level bringing the first tentative bearish signal after a period of upside.
USD/JPY weakening around trendline resistance
USD/JPY has managed to rally well from the trendline support that has underpinned the price action over the past two-months. However, we are now back into more overbought levels given the rise into trendline resistance.
That signals the potential for a short-term move lower to continue the pattern. With the price starting to fade, there is a good chance we do see a period of downside from here, with a break below ¥110.66 signalling the beginning of that short-term pullback. Alternatively, a break up through the recent ¥111.11 peak would point towards a potential bullish breakout from this ascending channel.
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.
Please see important Research Disclaimer.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.