EUR/USD and GBP/USD head lower as USD/JPY consolidates below resistance
EUR/USD and GBP/USD continue to show signs of impending weakness, while USD/JPY consolidates below key resistance.
EUR/USD remains at risk despite Monday’s gains
EUR/USD has been trying to regain lost ground over the course of this week, coming off the back of Friday’s sharp decline for the pair.
However, with a wider bearish trend in play, that break below $1.1572 does highlight the potential for another turn lower before long. With that in mind, a bearish outlook holds unless the price rises up through $1.1692 resistance.
GBP/USD continues to head lower
GBP/USD is on the back foot ahead of tomorrow’s Bank of England (BoE) meeting. While we are expecting to see the bank raise rates, there are questions over whether the meeting will provide a more dovish stance in regard to future rate movements.
The downward trend of lower highs seen over the course of the past three-months does highlight the potential for a bearish continuation move like the one currently taking place. As such, further downside does look likely, with the continued creation of lower intraday highs key to that. A rise up through $1.3693 would be required to bring about a wider upside move for the pair.
USD/JPY continues to consolidate below key resistance
USD/JPY has been consolidating below the long-term resistance level of ¥114.73 of late. The near-term trend does still remain bullish, but that does raise the risk of a near-term pullback.
However, a decline through ¥113.00 would be required to provide that bearish signal. Instead, we have seen another 76.4% Fibonacci support level come into play here, with the price on the rise since. As such, there is a good chance we remain within this consolidation pattern, with a break through either ¥113.00 (bearish) or ¥114.73 (bullish) bringing a fresh signal for traders.
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
