EUR/USD, GBP/USD and USD/JPY driven by weaker dollar

EUR/USD, GBP/USD and USD/JPY fight back against the dollar as a risk-on mood helps drive the greenback lower.

EUR/USD pushing higher towards key resistance

EUR/USD is continuing the gains seen in the back-end of last week, with the pair heading back towards the key $1.192 resistance level once again.

That pair has largely been in a range over the course of the past two months, with the price failing to break through either $1.1602 or $1.192 during that period. Thus while the rise through the $1.1843 swing high does point towards a potential push higher from here, the big questions will be asked at $1.192 if we reach that level.

GBP/USD heads higher after latest retracement

GBP/USD is on the rise once more, as Brexit talks accelerate into the final seven weeks of negotiations. That uncertainty is likely to ensure a relatively volatility pound as we move forward, yet for now the pair has a clear uptrend in play.

With that in mind, the uptrend remains relevant until we see a break below the $1.2854 swing low. With the pair having established a mid-range retracement, there is still a chance we could see the pair decline back toward the deeper levels. As such, it makes sense to await a break through $1.3313 to negate that potential for short-term weakness.

USD/JPY heads lower after rally into descending trendline

USD/JPY is back on a more bearish footing after the latest retracement into a confluence of Fibonacci (76.4%) and trendline resistance.

The pair has been trading in a clear downtrend over the course of 2020 thus far, and this latest rally does little to negate that fact. With that in mind, this pair looks likely to weaken further from here, with a break up through the ¥106.11 swing high required to negate that bearish outlook.

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.