EUR/USD, GBP/USD and USD/JPY all under pressure
Waning risk appetite continues to be felt across currency pairs, with losses for EUR/USD, GBP/USD and USD/JPY.
EUR/USD loses momentum
EUR/USD’s lower highs over the past few days indicate a waning of short-term bullish momentum, but the pair has managed to hold on to most of its gains for August so far.
Dips towards $1.117 have found buyers, so a break below $1.116 would be needed to open the way to a deeper pullback. A fresh rally today from the $1.118 zone would target $1.122, and a move through $1.123 would create an intraday higher high and revive the bullish view.
GBP/USD mixed ahead of unemployment figures
GBP/USD has been declining for weeks, and while the pair rebounded yesterday the move ran out of steam at $1.21.
Today marks the beginning of the three days of UK data, with unemployment and wage figures up today. Further declines today head towards the low from the end of last week at $1.2015, while a move back above $1.21 would create a higher high in the short term.
Overnight USD/JPY bounce runs out of steam
USD/JPY rallies continue to be selling opportunities, with the bounce towards ¥105.50 running into resistance.
Further declines target ¥105.00 and then down to ¥104.70, the January low. Any bigger rebound is likely to run into resistance around ¥107.00.
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