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?

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.

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.

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.

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

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

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.