EUR/USD declines while USD/JPY surges amid US-China trade hopes
EUR/USD breaks lower, with USD/JPY on the rise amid growing hope of a US-China trade deal. Meanwhile, GBP/USD continues to consolidate.
EUR/USD breaks below key support level
EUR/USD fell below the $1.1347 support level this morning, seemingly paving the way for a period of declines over the coming days.
The recent trend of higher highs and lows is likely to remain, yet this drop below $1.1347 points towards a likely retracement phase coming into play from here. With that in mind, watch out for a move into the 61.8%-76.4% retracement zone ($1.1269-$1.1235) before the wider bullish trend starts to come back into play.
GBP/USD continues to consolidate
GBP/USD remains within a consolidation phase, with the pair declining back into the $1.2661 support level this morning. A break below that level would signal a likely bearish phase coming into play.
However, until that break occurs it seems likely we will see another move higher to continue this consolidation phase.
USD/JPY rallies into trendline resistance
USD/JPY has been on the climb throughout recent trading days, with the pair moving towards the crucial ¥108.80 breakout level following a shift out of haven assets this morning. However, the wider downtrend remains intact unless we see a break through that ¥108.80 swing high.
With that in mind, watch for whether we start to decline from trendline resistance, with a break through ¥108.80 required to bring about a bullish outlook for the pair.
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
