EUR/USD, GBP/USD, and USD/JPY start to reverse recent fortunes

Dollar strength could help drive EUR/USD, and USD/JPY, while GBP/USD hopes to reverse its recent fortunes after a decline into key support.

EUR/USD rolling over from Fibonacci resistance

EUR/USD has enjoyed a period of strength over the course of the past week, with the pair rising back into the 76.4% Fibonacci resistance level.

That brings us into an area where the pair could reverse lower to continue the downtrend seen throughout 2021 thus far. With that in mind, a bearish outlook is in play here, with a rise up through $1.199 required to bring about a more positive view. To the downside, a break below $1.1861 would add greater confidence to this bearish outlook.

GBP/USD back into key $1.367 support

GBP/USD has been hit hard of late, with the pair falling back into the prior swing low of $1.367. That level was also respected on Friday, with an initial rebound ultimately fading to take us back into key support once again this morning.

Keep a close eye on the $1.3744 resistance level here, with a break through that swing high bringing about a more positive outlook. However, while we could see a positive break through that level, there is also a risk that the bears come back into prominence with a break below the $1.367 level.

USD/JPY turning lower, yet bulls could be back before long

USD/JPY is starting the week on the back foot, with the pair turning lower from the ¥109.94 swing high.

We are seeing the pair weaken from that level, but the recent 76.4% retracement does highlight the fact that this market still does remain within a bullish trend on the daily chart. As such, this current move lower could bring a buying opportunity, with a decline through ¥108.41 required to negate the current wider uptrend.

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.