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. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

Dollar weakness expected for GBP/USD and USD/JPY

Dollar weakness looks to be on the cards, with GBP/USD gains likely to be joined by USD/JPY weakness. Meanwhile, EUR/USD looks primed for a breakout.

EUR/USD closing in on triangle apex

EUR/USD failed to break into a new higher high yesterday, instead reversing lower to continue the symmetrical triangle formation that has been building.

With the price having now declined into trendline support, we are approaching the apex of this formation. As such, watch for whether we break through $1.1038 or $1.1075 to provide a signal of where we go from here.

GBP/USD pushes higher to continue uptrend

GBP/USD managed to push higher once again yesterday, following on from a 61.8% Fibonacci retracement.

The uptrend remains intact, with the Federal Reserve (Fed) rate cuts coupled with easing fears of a no-deal Brexit providing the pound a boost. That is likely to continue, with any short-term downside likely to bring about a new buying opportunity. As such, a bullish picture remains unless price break below $1.2435.

USD/JPY starting to weaken from trendline resistance

USD/JPY has started to weaken after a rally into trendline resistance, with the price falling into the 61.8%-76.4% Fibonacci zone. The wider long-term trend remains bearish and thus it is likely the pair will soon reverse lower once again.

Given the rally into this trendline, there is a good chance that market top is upon us. However, it makes sense to await a breakdown below ¥107.50 for that bearish confirmation signal. Until then, there is still a chance that we could continue the short-term uptrend.

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

liveprices.javascriptrequired

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.