Sterling heads lower once again after brief rebound
EUR/USD and GBP/USD are heading lower, following on from a brief period of strength. Meanwhile, USD/JPY is also weakening, as risk-off sentiment sees higher demand for the yen.
EUR/USD breaking lower after latest upside retracement
EUR/USD managed to rally sharply off the back of a drop into $1.1111 support last week. That continues the downtrend over recent months, with the subsequent rebound likely to falter just like the previous occasions.
The rally took us into an important confluence of resistance, with the price turning lower from a meeting point of two trendlines and the 200-day simple moving average (SMA). A break through $1.1264 would signal a bullish shift away from this recent downtrend. However, until then it looks likely we will continue the wider trend by moving towards the $1.1111 lows once more.
GBP/USD heading lower once again
The gains look to be over for GBP/USD, with the recent rebound being sold into this morning.
The continued creation of lower highs points to further losses from here on in, with a break through $1.2814 required to bring about a more bullish outlook. Until then, there is a good chance we could will see the pair continue to break lower to maintain the bearish outlook of recent weeks.
USD/JPY heading lower once more after post-double top rebound
USD/JPY has been breaking lower over the course of the past week, with the prior rebound looking like a retracement following a double top breakdown.
With the market currently reaching the ¥109.27 swing low, there is a good chance we will see further downside to come as the pair moves into the ¥109.09 lows. A break below that level would signal further downside to come, with a rise through ¥109.63 required to bring about a more bullish outlook for the short-term.
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