EUR/USD and GBP/USD pause within bearish breakdown, while USD/JPY starts to reverse lower
EUR/USD and GBP/USD pause after recent slump, while USD/JPY starts to reverse latest gains.
EUR/USD pauses after recent slump
EUR/USD has been hit hard over the course of the week, with the pair trading at the lowest level in 14 months.
We have seen little by way of bullish momentum thus far. Therefore, it makes sense to expect further downside to come. A rise up through the $1.1609 would be required to bring a more neutral short-term picture into play.
GBP/USD expected to fall further after recent declines
GBP/USD has similarly suffered sharp losses over the course of the week, with the pair hitting a nine-month low on Wednesday.
While the volatility has eased somewhat since then, the gains seen yesterday seem to have simply formed a 76.4% Fibonacci retracement. As such, further downside looks likely unless we see a break up through the $1.3555 resistance. A beak below $1.3411 brings greater confidence of another breakdown.
USD/JPY falls below support after period of sharp gains
USD/JPY has reversed lower towards the end of the week, with the pair moving into retracement mode following a period of sharp gains in the wake of last week’s Federal Open Market Committee (FOMC) meeting.
There is a risk of a deeper pullback given the decline through ¥111.20 support, yet any such downside would be viewed as a buying opportunity unless price falls through the ¥109.12 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.
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.
