EUR/USD and GBP/USD weakening, while USD/JPY rallies
USD/JPY is still looking to push higher, but EUR/USD and GBP/USD are under threat as recent weakness intensifies.
EUR/USD back to August lows
EUR/USD has almost completely retraced the early August bounce, with shorts coming in to push the pair back down over the past week.
A bounce from above $1.105 would create a possible double-bottom, and target the $1.122 highs from last week. Further declines below $1.10 would be a significant bearish development and open the way to the May 2017 lows at $1.085.
GBP/USD bounce under threat
After a brief bounce above $1.21, the GBP/USD pair looks to be headed lower once more.
The price ran out of steam around $1.217, the highs from early August, and fresh declines seem likely, with the August low of $1.2025 the first target. A push below $1.2084 would imperil the sequence of higher lows seen since last week, and suggest that the sellers are back in charge.
USD/JPY still rallying
In contrast to the previous two pairs, USD/JPY may soon provide a buying opportunity.
Having pushed higher over the past week, the price has dropped back from resistance around ¥106.70. A possible higher low is being created, with a bullish crossover in hourly stochastics potentially providing a short-term buying opportunity. The longer-term picture remains bearish, with the pair having carved out lower highs since April.
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.
