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 gains ease, while USD/JPY breaks support

Dollar weakness has seen EUR/USD and GBP/USD rise, while USD/JPY weakens. Can these moves persist or will the Fed help bolster the greenback?

EUR/USD comes under pressure from Fibonacci resistance

EUR/USD managed to surge into the 61.8% Fibonacci resistance level yesterday, in a move that broke out of the hourly trend and instead seems to have kicked off another wider retracement as evident on the four-hour chart. That wider trend of lower highs remains in play unless we see a break through the $1.0991 peak from mid-April.

Given the respect of the 61.8% Fibonacci retracement ($1.089), there is a chance we could simply head lower from here, with a break below $1.0809 adding credence to that idea. However, there is also a possibility we could rise into the 76.4% retracement at $1.0923. In either case, a bearish outlook is in play unless we see a break through $1.0991.

GBP/USD continues its ascent, but resistance lies ahead

GBP/USD has been on the rise since finding Fibonacci support at $1.228 last week. With that pair moving into a deep retracement zone, there is a possibility we could see some downside if the price starts to break from this current intraday rise.

As such, a break below $1.2404 could start to see the pair reverse lower once again. Until then, it’s a case of seeing whether this rally has enough juice left to break through the 76.4% level or not. Should that occur, we could be looking at a continuation break through $1.2647.

USD/JPY breaks into fresh one month lows

USD/JPY managed to break below the crucial ¥106.92 support level yesterday, bringing a new one-month low. That is likely to bring further downside before long.

With the directional bias now clearly established, bearish positions are preferred. A short-term rise is possible given recent declines, yet a bearish outlook remains in play irrespective of whether that happens or not. A break through the ¥108.08 level would be required to negate this bearish outlook.

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.