EUR/USD, GBP/USD and USD/JPY driven by dollar declines

EUR/USD, GBP/USD and USD/JPY continue their recent trends, with sharp dollar declines driving overall sentiment throughout the FX realm.

EUR/USD uptrend continues as price hits two-year high

EUR/USD has continued its uptrend, with the price breaking into a fresh two-year high. That brings us back into a long-term trendline resistance region.

We are also trading close to the upper end of an ascending standard deviation channel here after an extended run higher overnight. With that in mind, there is a chance we see another period of consolidation come back into play before long. Nevertheless, whether that pullback occurs or not, the bullish outlook remains in play here unless the pair break below yesterday’s low of $1.173.

GBP/USD drives higher, with uptrend remaining consistent

GBP/USD has continued its recent uptrend, with the pair driving towards the March peak of $1.32. This recent surge has extended sharply higher overnight, with the possibility of a retracement always worth considering.

Nevertheless, while the finer details on how this uptrend continues remains to be seen, further upside does look likely before long. As such, a bullish outlook remains in play unless the price breaks the Thursday low of $1.2944. Until then, any pullback will be see as a potential formation to trade around.

USD/JPY downtrend extends to hit four-month low

USD/JPY has seen another bout of sharp losses overnight, with the consolidation seen through much of the week finally resolving with another leg lower.

That decline looks likely to persist as we move forward, with a bearish outlook in play unless ¥105.29 breaks. With that in mind, any upward retracement is likely to provide a bearish opportunity rather than a reason to worry about the trend coming to an end.

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.

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