EUR/USD, GBP/USD and USD/JPY all in retreat
Risk aversion is being felt across FX markets, as the dollar rises versus the euro and sterling, but gives way against the yen.
EUR/USD reversal continues
The downtrend of the past week goes on, as the EUR/USD price heads back to the lows of last week at $1.082. Further losses bring $1.077 into view, the lows from early April.
As we saw on Friday and again yesterday, the price is so far unable to break above $1.089, a key area of resistance over the past week. Until this is broken to the upside, further gains seem unlikely.
GBP/USD downtrend gathers pace
It is a similar outlook for GBP/USD, as the downtrend from last week’s peak at $1.265 continues. Lower highs and lower lows remain in place.
Some strength in Monday’s session ran out of steam at $1.248, hitting trendline resistance. While the price is attempting to push higher in the early part of Tuesday’s session, it will need to clear $1.248 to provide a more bullish view. Further declines head towards $1.231 and $1.22.
USD/JPY struggles to hold its ground
Since Friday we have seen sellers continue to bear down on the price of USD/JPY, with short-term bounces coming under pressure.
Repeated attempts yesterday to break short-term resistance failed yesterday, and further declines towards ¥107.00 and lower seem likely. A rally through ¥107.90 would provide a more bullish short-term view.
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.
