Skip to content

EUR/USD, GBP/USD and USD/JPY volatile after Iranian airstrike

EUR/USD, GBP/USD and USD/JPY volatility heightened in the wake of an Iranian attack on US airbases.

JPY Source: Bloomberg

EUR/USD slumps into notable support level

EUR/USD has continued its downturn, with the pair heading back into the $1.1125 support level established on Friday.

The uptrend evident throughout the past three months remains in place unless we see a break below the $1.1067 support level. However, a decline below $1.1125 level would certainly raise the likeliness that this is the beginning of the wider bearish reversal in line with the long-term downtrend evident throughout recent years. Thus, today will be dominated by the question of whether $1.1125 will be broken or not, with the $1.1107 Fibonacci support level providing the next level of note below that threshold.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD struggles to regain ground amid recent volatility

GBP/USD has failed to really gain any directional traction this week, with market volatility providing a relatively unstable environment for the dollar.

Nevertheless, the bullish trend remains from the past few months, and that signals a high likeliness of further upside to come. Watch out for a break through $1.3212 to bring about a more confident bullish outlook for the short term.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY rebounds after Iranian-led decline

USD/JPY saw a sharp move lower overnight, following an Iranian attack on two US airbases. However, the reality of that attack has significantly lessened that impact, with zero casualties and easing fears over a US response.

That rally we have since seen takes the price back towards yesterday’s peak of ¥108.63. A rise through that level would provide a more bullish short-term view as the pair retraces the wider sell-off from ¥109.71. However, until that happens there is a good chance we will see another move lower to continue the current trend of lower highs and lows.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

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 Tuesday 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.