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 drop as USD/JPY breaks higher

Dollar strength has seen USD/JPY stage a breakout, while putting further pressure on EUR/USD and GBP/USD.

EUR/USD pushing lower again

The EUR/USD pair has been losing ground steadily over the past few sessions. Since 18 August we have seen it create several lower highs and lower lows on the hourly chart, with yesterday’s failure to break $1.185 another bearish short-term development.

A renewed decline today below $1.178 would bring $1.175 into view, and then down to $1.172. A rally through $1.185 is needed to break the current sequence of lower highs.

GBP/USD falters in early trading

Rebounds for GBP/USD, which have been quite dramatic, have also been short lived.

Yesterday’s weak bounce could not hold $1.314 and the rally off the overnight lows has run its course at $1.311. Below $1.305 the price encounters the support zone at $1.3015, which has held back further downside so far this month.

USD/JPY breaks out of triangle

The price of USD/JPY has climbed steadily higher over the last few sessions, and has shrugged off some overnight weakness to clear trendline resistance from the 19/20 August high.

This breakout may provide fresh bullish momentum, targeting ¥106.10, and opening the way to a recovery of some of the ground lost in mid-August. Rising trendline support from the 19 August low comes into play around ¥105.90.

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


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.