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EUR/USD and GBP/USD struggling as USD/JPY holds its ground

The bounce in EUR/USD and GBP/USD seen on Friday has stalled, while USD/JPY attempts to recover from the gyrations of late last week.

EUR/USD struggles after Friday bounce

Sellers continue to bear down on EUR/USD, after a bounce on Friday that only partially recovered Thursday’s losses.

If the buyers can hold the price above $1.212 then a rebound may still develop, but a drop back below this would certainly hand the initiative back to the sellers and open the path to $1.20 and $1.188.

GBP/USD gains capped below $1.42

Two attempts to move back above $1.42 on Thursday and Friday failed, and the GBP/USD price has dropped back again in early trading.

Recent weakness has been contained above $1.41 however, so sellers will need to clear this to begin a deeper pullback. Buyers need to recover $1.42 and then move on to $1.424.

USD/JPY holds Friday lows

After Thursday’s surge and Friday’s slump, the outlook for USD/JPY is quite clouded.

The price is holding above Friday’s low so far, which could lead to the formation of a new base for a fresh push higher. Sellers will need to push the price below ¥109.20 to spark a deeper correction.

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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