Dollar declines continue to dominate for EUR/USD, GBP/USD and USD/JPY
EUR/USD, GBP/USD, and USD/JPY see further dollar declines, but will we see a fightback after such sharp losses?
EUR/USD continues its push higher after latest breakout
EUR/USD looks set to continue its bullish trend following the breakout through $1.1832 resistance. That seemingly paves the way for another period of upside, with a rise through $1.188 providing a fresh bullish signal.
As such, further gains look likely from here as we seek to build on the recent bullish break.
GBP/USD breaks higher after recent consolidation
GBP/USD has see a sharp move higher, with the recent rise through $1.3024 initially providing us with a good clue that such a bullish breakout could be on its way.
With Brexit talks back underway today, further volatility should be expected. While we have seen a minimal retracement overnight, watch for a fresh rise through $1.3177 for a new bullish signal.
USD/JPY head and shoulders likely to bring further downside
USD/JPY managed to break below the ¥104.94-¥105.03 support level yesterday, bringing about a fresh bearish signal by completing a head and shoulders formation. With a bearish trend throughout much of 2020, this breakdown does simply provide the latest move in a long-standing bearish primary trend.
As such, further downside looks likely before long. Whether we see a short-term rebound or not remains to be seen. As such, a break below ¥104.34 would signal a swift continuation of that bearish short-term trajectory. Ultimately, we would need to see ¥105.75 broken to negate this bearish outlook.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.8 pips on EUR/USD
- Analyze market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on the most popular forex markets