Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Dollar takes a hit for EUR/USD, GBP/USD and USD/JPY

Dollar weakness looks to be taking hold, with EUR/USD, GBP/USD, and USD/JPY all moving against the greenback.

EUR/USD soars amid month end dollar sell-off

EUR/USD saw a sharp rise yesterday, amid a month-end slump in the dollar. That has taken us beyond the 76.4% Fibonacci level ($1.0923), raising the likeliness of a bullish break through $1.0991.

Overnight weakness has also failed to really take hold so today will be crucial in guiding us for the week ahead. A break through $1.0991 would bring about a more bullish outlook by negating the wider creation of lower highs that have been in play throughout the past two months. As such, that trend does still remain intact, yet the break through the 76.4% level could point towards a bullish break through $1.0991. Should that occur, it would negate the recent bearish trend.

GBP/USD rallies into key resistance

GBP/USD has managed to continue its recent ascent, with the 76.4% support at $1.228 ultimately proving a continuation signal after all.

With the price respecting the $1.2647 resistance level yesterday, we need to see a break through that level to continue this resurgence. Until then, there is a good chance this pullback is a temporary retracement before we head back into that $1.2647 resistance level. With that in mind, another push higher looks likely, with a break below $1.2389 required to bring a more bearish picture once more.

USD/JPY likely to head lower after overnight upside

USD/JPY rebounded overnight, with the pair's price rising back into trendline resistance.

With the price having broken below the ¥106.92 resistance level on Tuesday, there is a good chance that this recent resurgence is merely a retracement before we head lower. With the 61.8% Fibonacci level and trendline resistance holding up, we look likely to turn lower from here. As such, a bearish outlook is in play as we go forward, with a break through ¥108.08 required to negate that view.

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


Prices above are subject to our website terms and agreements. Prices are indicative only

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 forex provider.

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