EUR/USD, GBP/USD and USD/JPY expecting further dollar strength

Dollar strength looks likely to take hold yet again for EUR/USD, GBP/USD, and USD/JPY.

EUR/USD turning lower from key resistance

EUR/USD has managed to rise back into the $1.1754 resistance level, which represents both the prior support levels from August and September, alongside yesterday's peak.

The topping pattern seen over the course of recent weeks looks to have set us on a more bearish course, and thus we are likely to see further losses take shape before long. As such, a bearish outlook is in play here, with a rise through the $1.1872 level required to negate that view.

GBP/USD rallies back into 76.4% Fibonacci level

GBP/USD has rallied back into the 76.4% Fibonacci retracement level this morning, following on from yesterday's decline from that same level.

With the pair weakening once again, the downtrend looks likely to kick in once again. A break back below yesterday's low of $1.2805 would bring greater confidence of a move back towards the $1.2673 low. Ultimately we would need to see $1.3007 broken to negate this bearish outlook.

USD/JPY turning higher after recent pullback

USD/JPY is once again turning higher, with the recent uptrend looking set to continue.

With a wider bearish trend likely to come back into play at some point, the 76.4% Fibonacci resistance level at ¥105.95 will be a notable level of resistance that could cap further gains. However, we ultimately need to see the intraday trend of higher lows negated to bring a bearish outlook once more. That means a bullish view holds unless price drops below the ¥105.26 level.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.