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, GBP/USD, and USD/JPY start to reverse recent fortunes

Dollar strength could help drive EUR/USD, and USD/JPY, while GBP/USD hopes to reverse its recent fortunes after a decline into key support.

EUR/USD rolling over from Fibonacci resistance

EUR/USD has enjoyed a period of strength over the course of the past week, with the pair rising back into the 76.4% Fibonacci resistance level.

That brings us into an area where the pair could reverse lower to continue the downtrend seen throughout 2021 thus far. With that in mind, a bearish outlook is in play here, with a rise up through $1.199 required to bring about a more positive view. To the downside, a break below $1.1861 would add greater confidence to this bearish outlook.

GBP/USD back into key $1.367 support

GBP/USD has been hit hard of late, with the pair falling back into the prior swing low of $1.367. That level was also respected on Friday, with an initial rebound ultimately fading to take us back into key support once again this morning.

Keep a close eye on the $1.3744 resistance level here, with a break through that swing high bringing about a more positive outlook. However, while we could see a positive break through that level, there is also a risk that the bears come back into prominence with a break below the $1.367 level.

USD/JPY turning lower, yet bulls could be back before long

USD/JPY is starting the week on the back foot, with the pair turning lower from the ¥109.94 swing high.

We are seeing the pair weaken from that level, but the recent 76.4% retracement does highlight the fact that this market still does remain within a bullish trend on the daily chart. As such, this current move lower could bring a buying opportunity, with a decline through ¥108.41 required to negate the current wider uptrend.

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.