EUR/USD, GBP/USD and USD/JPY show tentative signs of weakness after recent gains
EUR/USD, GBP/USD and USD/JPY show initial signs of weakness, but questions remain over whether we are due a pullback after recent gains.
EUR/USD pullback brings price into Fibonacci support
EUR/USD has been easing back over the course of the past week, with the price falling into the 76.4% Fibonacci support level.
The recent attempt to regain ground is set within a wider downtrend from this pair, bringing the potential for a move lower before long. A break below $1.1572 would bring about a fresh bearish outlook for the pair. However, for now the question is whether we see the price turn upwards from the 76.4% Fibonacci support level or not.
GBP/USD continues to consolidate after recent rise
GBP/USD has been consolidating over the past week, with the pair pushing up towards the crucial $1.3913 swing high. A break through that level would bring an end to the wider trend of lower highs that has been playing out over recent months.
However, we remain below that level as things stand, with the price consolidating above the $1.3742. A break below that support level could bring the bears back into play over the near-term. Given the wider downtrend seen since the May highs, such a breakdown could bring another bearish phase into play.
USD/JPY falling back after latest move higher
USD/JPY has turned lower in early trade today, with the price seemingly falling short after a move upwards from the 76.4% Fibonacci support level. This has taken the price back down below trendline support, threatening a wider pullback for the pair.
A break below ¥113.41 and ¥113.00 would raise the likeliness of a wider retracement phase coming into play. Until then, the question here is whether we break those support levels or find support once again to maintain the trend of higher lows.
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.
