Dollar takes a hit for EUR/USD, GBP/USD and USD/JPY
Dollar weakness looks to be taking hold, with EUR/USD, GBP/USD, and USD/JPY all moving against the greenback.
EUR/USD soars amid month end dollar sell-off
EUR/USD saw a sharp rise yesterday, amid a month-end slump in the dollar. That has taken us beyond the 76.4% Fibonacci level ($1.0923), raising the likeliness of a bullish break through $1.0991.
Overnight weakness has also failed to really take hold so today will be crucial in guiding us for the week ahead. A break through $1.0991 would bring about a more bullish outlook by negating the wider creation of lower highs that have been in play throughout the past two months. As such, that trend does still remain intact, yet the break through the 76.4% level could point towards a bullish break through $1.0991. Should that occur, it would negate the recent bearish trend.
GBP/USD rallies into key resistance
GBP/USD has managed to continue its recent ascent, with the 76.4% support at $1.228 ultimately proving a continuation signal after all.
With the price respecting the $1.2647 resistance level yesterday, we need to see a break through that level to continue this resurgence. Until then, there is a good chance this pullback is a temporary retracement before we head back into that $1.2647 resistance level. With that in mind, another push higher looks likely, with a break below $1.2389 required to bring a more bearish picture once more.
USD/JPY likely to head lower after overnight upside
USD/JPY rebounded overnight, with the pair's price rising back into trendline resistance.
With the price having broken below the ¥106.92 resistance level on Tuesday, there is a good chance that this recent resurgence is merely a retracement before we head lower. With the 61.8% Fibonacci level and trendline resistance holding up, we look likely to turn lower from here. As such, a bearish outlook is in play as we go forward, with a break through ¥108.08 required to negate that view.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
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
Prices above are subject to our website terms and agreements. Prices are indicative only
