EUR/USD and GBP/USD hit Fibonacci resistance, as USD/JPY heads lower
Dollar weakness brings EUR/USD, GBP/USD and USD/JPY into key levels. The ability to hold or break those levels will be crucial in determining where we go in the days ahead.
EUR/USD rallies into Fibonacci resistance
EUR/USD has continued Friday's gains this morning, with the pair rising into the 76.4% Fibonacci retracement level at $1.0856.
This is the first overbought signal we have seen in the stochastic for two weeks, and that is unlikely to last. Given the current respect at that resistance level, a bearish reversal looks likely from here, with a break through $1.0896 required to negate this bearish outlook.
GBP/USD likely to roll over after early gains
GBP/USD has similarly managed to surge into the 76.4% Fibonacci resistance level at $1.2457.
That signals a likely bearish reversal coming into play from here, with a break through $1.2522 required to bring about a heightened chance of continued bullish price action. Until then, this looks like a good opportunity to look for the bears to come back into play.
USD/JPY heads into key support
USD/JPY has broken from its consolidation this morning, with the price heading into the key ¥106.92 support level.
That looks likely to be the most important level to watch today, with a break below providing a renewed bearish outlook. Given the respect seen over the last month, there is no given that this will be broken. As such, the reaction to this level should guide us as we move forward into the week.
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.