Dollar weakness drives EUR/USD and GBP/USD upside, while USD/JPY continues to drift lower
Dollar weakness continues, with EUR/USD and GBP/USD on the rise, as USD/JPY drifts lower.
EUR/USD rallies into major confluence of resistance
EUR/USD has managed to push higher once again on Friday, with the pair driving out of its recent retracement phase.
However, that rally has taken us into a key resistance zone, with the March peak of $1.2113, 76.4% Fibonacci resistance, and prospective descending trendline all converging around this area. With that in mind, todays outlook will depend on the ability or inability to break through this zone.
GBP/USD continues to build from 61.8% support
GBP/USD has been showing signs of a potential bullish resurgence, with the recent rally into the $1.40 handle raising expectations over forthcoming price action. That raises the likeliness that the recent decline is simply a retracement before we head higher once more.
With price turning higher from a confluence of the 61.8% Fibonacci retracement and 200 simple moving average (SMA), there is a good chance we continue to push higher from here. However, we would ultimately need to break below $1.3716 to negate the idea that we could be on the cusp of a bullish resurgence
USD/JPY continues to drift lower after bearish break
USD/JPY managed to break below the crucial ¥108.34 support level last Monday, and we have seen the pair grind lower ever since.
While the downtrend may not be the most inspiring move, it has been very consistent thus far. As such we are likely to see this bearish pattern continue its decline as long as we do not break through the ¥108.14 swing high established on Friday.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
