EUR/USD and GBP/USD drop as USD/JPY breaks higher
Dollar strength has seen USD/JPY stage a breakout, while putting further pressure on EUR/USD and GBP/USD.
EUR/USD pushing lower again
The EUR/USD pair has been losing ground steadily over the past few sessions. Since 18 August we have seen it create several lower highs and lower lows on the hourly chart, with yesterday’s failure to break $1.185 another bearish short-term development.
A renewed decline today below $1.178 would bring $1.175 into view, and then down to $1.172. A rally through $1.185 is needed to break the current sequence of lower highs.
GBP/USD falters in early trading
Rebounds for GBP/USD, which have been quite dramatic, have also been short lived.
Yesterday’s weak bounce could not hold $1.314 and the rally off the overnight lows has run its course at $1.311. Below $1.305 the price encounters the support zone at $1.3015, which has held back further downside so far this month.
USD/JPY breaks out of triangle
The price of USD/JPY has climbed steadily higher over the last few sessions, and has shrugged off some overnight weakness to clear trendline resistance from the 19/20 August high.
This breakout may provide fresh bullish momentum, targeting ¥106.10, and opening the way to a recovery of some of the ground lost in mid-August. Rising trendline support from the 19 August low comes into play around ¥105.90.
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.