EUR/USD and GBP/USD decline, as USD/JPY remains rangebound

EUR/USD and GBP/USD turn lower, with potential bearish breakdowns coming into play. Meanwhile, USD/JPY provides opportunity through its consistent rangebound price action.

​EUR/USD breaks below key support

EUR/USD has managed to break from the wider trend of lower highs and higher lows, with the decline through $1.0768 support providing a bearish breakdown signal.

The short-term trend is clearly bearish and thus it is a case of following that intraday trend. With that in mind, a bearish outlook is in play, with a break through $1.0847 required to negate that view.

GBP/USD rolling over after Fibonacci rebound

GBP/USD has been on the rise since finding support on the 76.4% Fibonacci support level on Tuesday. However, we are seeing the short-term bearish trend come back into play as the pair turns lower from a confluence of horizontal ($1.2408) and Fibonacci (61.8%) resistance.

Ultimately, we need to see the $1.2166 level broken to negate the wider uptrend that has been playing out since the 19 March low. However, with the pair heading lower, a break below $1.2247 goes a long way to signaling the potential for such a critical bearish breakdown.

USD/JPY consolidates as we await a breakout

USD/JPY has been in consolidation mode over the course of the week, with the pair trading within the ¥1.0808-¥1.0728 range. That formation continues to hold, yet the break from it will tell us plenty about where we go from here.

With the pair repeatedly coming back to the ¥1.692 level of support, a downside breakdown would also necessitate a move through that support level to bring a wider bearish view. In any case, until we see a breakout, this range provides us with a relatively consistent trading environment to utilise.

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.