EUR/USD, GBP/USD, and USD/JPY see dollar take a breather
EUR/USD, GBP/USD and USD/JPY reverse after dollar dominance, but will it last?
EUR/USD slumps into two-month lows
EUR/USD has dropped into a two-month low following a head and shoulders breakdown earlier in the week.
The pair has been extending those losses since breaking below that $1.2059 support level. That bearish picture holds for now, with a move through the $1.2050 swing high required to negate this short-term downtrend.
GBP/USD rebounds into deep retracement zone
GBP/USD has managed to regain ground after the wedge breakdown seen earlier in the week. While price has broken up through trendline resistance, there is a good chance we see this wider Fibonacci retracement zone come into play.
Ultimately the wedge breakdown does raise the risk of a more protracted pullback. Thus it makes sense to watch for a rise through the $1.3858 level to resume the wider bullish trend. Until then, watch for whether price respects of break the $1.3712 resistance level.
USD/JPY starts to reverse after latest leg higher
USD/JPY is in retracement mode after a period of gains that took the pair into the highest level since mid-November.
With a clear uptrend in play here, the current decline looks likely to provide a retracement phase before we move higher once again. That view holds unless we see price break below the ¥104.97 swing-low.
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.
Explore the markets with our free course
Discover the range of markets you can trade on - and learn how they work - with IG Academy's online course.
Ready to trade forex?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 80 major and niche currency pairs
- Protect your capital with risk management tools
- Analyse and deal seamlessly on smart, fast charts
Share IG and get rewarded
Share us, be rewarded
Earn up to $51,000 for introducing your friends to us.
Terms and conditions apply.
Live prices on most popular markets
- Forex
- Shares
- Indices
