Dollar weakness pauses for EUR/USD, GBP/USD and USD/JPY
Dollar weakness helps lift EUR/USD and GBP/USD, as USD/JPY attempts to recovery from a near eight-month low.
EUR/USD rises into key resistance
EUR/USD has managed to push into the key $1.1880-$1.1917 resistance zone today, following a rally from the bottom of a two-month range.
That consolidation seen since early-September highlights the possibility we will see the pair turn lower from this notable area of resistance. As such, the ability to break through the $1.1917 level will be key in signaling the potential for another phase of upside from here.
GBP/USD hits two-month high
GBP/USD has similarly managed to breach resistance to bring about a fresh two-month high.
That builds on the uptrend that has been playing out since the September lows of $1.2675. As such, the ability to remain above this $1.3177 level is key in driving further upside over the near-term. However, with a clear pattern of relatively deep retracements, a break below the $1.3092 level would signal another pullback of the rally from $1.2861.
USD/JPY seeks to steady itself after sharp decline
USD/JPY saw sharp losses over the course of last week, with the pair dropping into the lowest level in almost eight months.
The wider downtrend remains intact, pointing towards the potential for further downside. However, with such an extended move lower, there is a chance we could enter a more substantial upward retracement phase. As such, a break back below the ¥103.17 would bring a fresh bearish signal, with the pair showing the potential to regain ground over the short term until then.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
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
- Take your position
- 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.
