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.
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.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this forex strategy article, and try it out risk-free in your demo account.
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
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
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.
