EUR/USD and GBP/USD show tentative signs of weakness as dollar strength looks to push USD/JPY higher
EUR/USD, GBP/USD and USD/JPY have been on the rise, yet dollar strength could soon drive cable and Eurodollar lower.
EUR/USD rebound under threat after slump into support
EUR/USD respected the 61.8% Fibonacci resistance level once again yesterday, with the recent period of consolidation clearly struggling with the $1.1663 to $1.1667 resistance zone.
From a wider perspective, there is a clear bearish trend in play for this pair. However, a break below the $1.1571 swing-low would provide greater confidence that the wider bearish trend is kicking in once again. Until then, it makes sense to see if the confluence of the 100-simple moving average (SMA) and 76.4% Fibonacci levels ($1.1595) hold as support or not.
GBP/USD rally starting to show signs of potential weakness
GBP/USD has been on the rise over the course of October, with the pair pushing into a fresh one-month high last Wednesday.
However, we have seen the price fall back since then, with the price breaking tentatively below the $1.3742 swing-low. A more convincing move below that level would bring about a signal that we could soon see the pair reverse lower given the wider bearish trend in place since the beginning of June. Alternatively, a rise up through $1.3834 would point towards a bullish continuation from here.
USD/JPY on the rise after retracement into 76.4% support
USD/JPY has been regaining ground over much of the past month, with the pullback seen towards the back-end of last week representing a short-term blip in that move. Coming off the back of a rise into the crucial October 2017 peak of ¥114.73, it should perhaps come as no surprise to have seen some consolidation at such an important resistance level.
Nonetheless, we are seeing the price turn upwards once again here, coming off the back of a decline into the 76.4% Fibonacci support level. A break back below ¥113.00 would signal a potential wider pullback coming into play. Until then, it looks as if we could have another push into that crucial ¥114.73 level in a bid to form a fresh four-year high and extend this ongoing uptrend.
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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
