EUR/USD, GBP/USD, and USD/JPY recovering from recent pullback
EUR/USD, GBP/USD, and USD/JPY push higher following period of short-term declines.
EUR/USD attempts to steady itself after latest decline
EUR/USD has been attempting to stabilise itself after yet another phase of weakness that led the pair into a fresh four-month low. The recent decline has taken us into the 76.4% Fibonacci support level at $1.1778, raising questions over whether this could be the beginning of a more protracted move higher.
Thus, we are in fact at a crossroad of a longer-term uptrend and a multi-month downtrend. As such, watch out for a potential rebound over the near term, although we would ultimately need to see a move through $1.1602 or $1.199 to tell us whether we end the wider uptrend or break this recent decline.
GBP/USD on the rise after latest move lower
GBP/USD is on the rise in early trade, with the pair attempting to regain ground following a pullback in the early part of last week. That recent pullback took us into the 76.4% Fibonacci level, raising a smaller scale example of what we are seeing in EUR/USD.
A break below $1.3566 brings a wider bearish picture into play, while a rise through the $1.4006 ends this recent bearish trajectory to resume the long-term uptrend. For now, the mid-sized rebound points towards the potential for a deeper move even if this is only a retracement phase as the dollar bulls take a breather.
USD/JPY pullback finds support on previous breakout level
USD/JPY managed to break through ¥109.36 resistance on Friday, with the pair hitting a fresh nine-month high in the process.
Notably, that rally ended at the key ¥109.85 peak from June 2020. While the pair has pulled back from that resistance level, we have seen 109.36 hold up as new support. As such, there is a good chance we see further upside from here in a bid to continue the uptrend seen over the course of 2021 thus far. A break back below the ¥108.34 low would be required to negate this bullish trend.
This information has been prepared by IG, a trading name of IG Markets 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
