EUR/USD, GBP/USD, and USD/JPY driven by dollar gains
Dollar gains seen in EUR/USD, GBP/USD, and USD/JPY, as risk-off sentiment dominates Europe.
EUR/USD weakness takes pair within reach of key support
EUR/USD has been on the back foot for much of the week, with Wednesday’s decline into the key $1.2059 providing the notable highlight as the price refused to break lower, for now. That level is going to remain key here, with a break back below $1.2059 providing the completion of a wider head and shoulders formation.
With that in mind, the current intraday trend of lower highs does point towards the potential for further losses today. However, the question of whether we break through that support level or not will provide a key signal for the price action over the coming week.
GBP/USD turns lower within triangle formation
GBP/USD saw another bout of sharp upside after a 76.4% Fibonacci retracement on Wednesday. However, while the price rose back towards the prior highs, we have seen another pullback come into play today.
With the uptrend in mind, it makes sense to watch for a potential rebound from the $1.3657 Fibonacci support level. Ultimately, a bullish outlook holds unless we see a break below the $1.363 swing low.
USD/JPY breakout paves the way for further upside
USD/JPY appears to have broken from a long-term downtrend, with the push through trendline and ¥103.93 resistance bringing about a fresh surge for the pair.
The latest pullback and break through ¥104.46 points towards further upside from here. Therefore, a bullish view holds unless we see a break back below the ¥104.17 swing low.
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.