EUR/USD, GBP/USD and USD/JPY all come under pressure

Risk aversion has gripped markets, and is being felt in forex markets as the euro and sterling weaken against the dollar.

EUR/USD drifts lower

There is no definite sign that EUR/USD will begin even a brief rebound, but it is true that the straight line decline since the beginning of February has slowed, with the price barely eking out a new lower low yesterday.

A short-term bullish wedge seems to have formed, with a move above $1.084 and through $1.085 sending the signal that some near-term upside is possible. Alternatively, a fresh decline through $1.082 would revive the downward move.

GBP/USD creates new lower low

A possible turn lower in GBP/USD seems to be at hand, as the price continues to decline after topping out at the end of last week at $1.305.

Having fallen below Friday’s low at $1.30, the price has broken the sequence of higher lows, and may now continue to decline, targeting $1.295, $1.29 and then $1.287. Alternatively, a recovery above $1.30 revives the bullish view.

USD/JPY turns down again

The USD/JPY price continues to come under pressure, although it has so far avoided a move below ¥109.55 and the lower bound of the recent range.

However, trendline resistance from the June 2015 high capped gains last week, and yesterday’s bounce ran out of steam at ¥110.00. Therefore, we wait for a break out of these levels to define the next bigger move.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.