EUR/USD, GBP/USD, and USD/JPY see dollar strength ease
Dollar gains take a breather for now, yet risk attitudes remain key for EUR/USD, GBP/USD, and USD/JPY.
EUR/USD starts to weaken after recent rebound
EUR/USD is on the back foot this morning, with the pair starting to weaken from a 76.4% Fibonacci resistance level ($1.2148). Despite the short-term intraday creation of higher highs, it looks like we could be forming an ABC style retracement into that Fibonacci level.
That points towards a potential continuation of the recent bearish trend. A rise up through the $1.2176 would negate this view, bringing a bullish signal for the pair. Until then, there is a good chance we could start to unwind this latest rise, with a break below $1.2094 pointing towards a potential challenge of the head and shoulders neckline of $1.2059.
GBP/USD breaking higher within ascending triangle formation
GBP/USD continues to respect the ascending triangle formation, with recent 76.4% Fibonacci retracement levels being hit along the way.
The $1.3758 level represents the key resistance threshold to watch out for, with a break through that level signaling an extension of this latest push higher. A break below $1.3657 would be required to negate this ongoing bullish outlook.
USD/JPY looks likely to continue recent resurgence
USD/JPY has been on the rise over the past week, with the pair appearing to reverse the long-term downtrend in play.
Price is currently consolidating after Friday's latest leg higher. However, unless we see a break through the ¥104.17 swing low, it is likely we are simply consolidating before price pushes upwards once more.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
