EUR/USD under pressure while GBP/USD holds steady and USD/JPY rallies

More poor eurozone data continues to hit EUR/USD, while dollar strength lifts USD/JPY. The pound remains relatively quiet a day after the announcement of Boris Johnson as the new UK PM.

EUR/USD still on the back foot

Hopes of a rebound were dashed as the EUR/USD price continued to fall yesterday, moving towards the $1.112 support zone. A possible rebound from this level would head towards $1.12 (previous support) and then on to $1.13.

The downtrend on the hourly chart is still firmly in place, so rebounds to work off the current oversold conditions may merely be fresh selling opportunities. The price has shown little ability to hold above the key moving averages on the hourly chart, so until this changes the sellers remain in control.

GBP/USD aims to create a higher low

Yesterday’s GBP/USD losses were stemmed around $1.243, which may see the creation of a higher low, but now a rebound needs to move above $1.255/$1.26, which held back progress in mid-July.

Further declines head towards $1.238, as the price resumes its downward move.

USD/JPY pushes higher

USD/JPY has been climbing steadily over the past few days, and may well be establishing a new higher low as it drops back from the highs of the week at ¥108.30.

If it can hold above ¥107.80 then the bullish view remains intact, and a fresh move higher may develop. The current bullish view, which builds on the 5 July breakout from trendline resistance, would only be impaired if the price drops back below ¥107.20.

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

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 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.