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.

Will dollar strength continue for EUR/USD, GBP/USD and USD/JPY?

EUR/USD, GBP/USD, and USD/JPY have been driven by the recent dollar resurgence. But will that continue?

​EUR/USD downturn looks likely to continue

EUR/USD has been on the slide following a bearish reversal breakdown seen earlier this morning.

The drop below $1.1737 seemingly paves the way for a more bearish phase, with further losses expected from here. That bearish outlook remains in play unless we see a break through the $1.1687 resistance level.

GBP/USD consolidating after recent losses

GBP/USD has seen plenty of downside over the course of September thus far, with the pair set on a new path with the break below $1.3053.

​That bearish trend looks likely to continue despite the current consolidation, with a rise through $1.3007 required to negate that outlook.

USD/JPY rise could result in another leg lower before long

USD/JPY has been on the rise over the course of the past week, with the dollar coming back into prominence after a period of weakness.

For this pair, we have a clear wider downtrend in play, and that remains the case despite short-term gains. With that in mind, another leg lower remains the most likely event unless we see a break above the ¥106.55 swing high. Watch for a break below the ¥105.24 level to bring a bearish picture into play once again. Until then, the short-term uptrend remains in play.​

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.

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.