EUR/USD and GBP/USD expected to roll over as USD/JPY grinds higher once again
Dollar domination is expected to continue, with recent retracements for EUR/USD, GBP/USD, and USD/JPY expected to resolve in favour of the trend.
EUR/USD ticks higher after touching parity
EUR/USD managed to finally reach the parity level, with yesterday’s price action seeing the pair reach 1.00 for the first time in 19-years. However, that level represented the absolute bottom of the day, with price ticking slightly higher in the hours that followed. This points towards a potential retracement or consolidation phase taking shape for the near-term.
Nonetheless, the pair trades within a very clear bearish trend as things stand. With that in mind, it looks likely we will soon enough see the pair turn lower to break back below parity. A rise up through the 1.0191 would be required to signal a wider retracement coming into play.
GBP/USD on the rise but bullish trend holds
GBP/USD will be in focus this morning, with UK Gross Domestic Product (GDP) managing to outperform estimates after rising to 0.5% for just May alone. We have seen the pound gaining ground against the dollar over the course of the past 24-hours, regaining ground after yesterday’s move into a two-year low.
It is worth noting that this pair has lost ground six of the past seven weeks. With that in mind, any short-term gains are expected to return back to the downside before long. Should we see any further strength today, the 61.8% and 76.4% Fibonacci levels look like an interesting position for shorts. A break up through the 1.2056 swing-high would be required to signal a wider retracement coming into play.
USD/JPY pushing back towards 23-year highs
USD/JPY has been a reliable outperformer over recent months, with the pair hitting a 23 year-high on Monday. We have seen price easing back since, but the bulls are once again in charge as price pushes back up towards that 137.75 level.
Nonetheless, until that peak is overcome, there is still a chance of a deeper retracement towards trendline support. Whether that happens or not, the wider trend points towards another upside breakout before long, with a decline through 135.32 required to bring a more bearish near-term view into play.
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
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
