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 weakness unlikely to last for EUR/USD, GBP/USD, and USD/JPY

The dollar is weakening ahead of the FOMC meeting, but recent patterns suggest another downside move for EUR/USD and GBP/USD, while USD/JPY is expected to recover.

​EUR/USD likely to falter again

EUR/USD is on the rise this morning, with the pair attempting to regain the ground lost on Friday. However, the lack of upward momentum does highlight the high likeliness that we will soon enough see the price roll over once again.

With that in mind we look likely to see this recent trend of lower highs come back into play once again here, with a bearish outlook in play unless the price rises through the $1.2218 swing high.

GBP/USD on the rise, yet bearish move looks likely

GBP/USD has a similar picture, with the recent trend of lower highs and lower lows pointing towards a potential move lower before long.

The pair appears to have rolled over for now, with a break through the $1.4185 level required to bring about a move positive outlook once again. Until that happens, there is a good chance this current rise is met with more selling pressure before long.

USD/JPY rolling over after trendline rally

USD/JPY has been on the front foot following a decline into trendline support. That rally plays into the uptrend seen over the course of the past two-months. While the price is weakening in early trade today, there is a good chance that this move lower provides us with another higher low.

As such, another move higher looks likely before long, although for the near term there is a risk we see some further downward pressure to form a fresh retracement. The bullish trend holds as long as the price remains above the ¥109.19 swing low.

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.