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.

EUR/USD and GBP/USD decline, as USD/JPY remains rangebound

EUR/USD and GBP/USD turn lower, with potential bearish breakdowns coming into play. Meanwhile, USD/JPY provides opportunity through its consistent rangebound price action.

​EUR/USD breaks below key support

EUR/USD has managed to break from the wider trend of lower highs and higher lows, with the decline through $1.0768 support providing a bearish breakdown signal.

The short-term trend is clearly bearish and thus it is a case of following that intraday trend. With that in mind, a bearish outlook is in play, with a break through $1.0847 required to negate that view.

GBP/USD rolling over after Fibonacci rebound

GBP/USD has been on the rise since finding support on the 76.4% Fibonacci support level on Tuesday. However, we are seeing the short-term bearish trend come back into play as the pair turns lower from a confluence of horizontal ($1.2408) and Fibonacci (61.8%) resistance.

Ultimately, we need to see the $1.2166 level broken to negate the wider uptrend that has been playing out since the 19 March low. However, with the pair heading lower, a break below $1.2247 goes a long way to signaling the potential for such a critical bearish breakdown.

USD/JPY consolidates as we await a breakout

USD/JPY has been in consolidation mode over the course of the week, with the pair trading within the ¥1.0808-¥1.0728 range. That formation continues to hold, yet the break from it will tell us plenty about where we go from here.

With the pair repeatedly coming back to the ¥1.692 level of support, a downside breakdown would also necessitate a move through that support level to bring a wider bearish view. In any case, until we see a breakout, this range provides us with a relatively consistent trading environment to utilize.

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.