EUR/USD, GBP/USD and USD/JPY on the rise once again
EUR/USD, GBP/USD and USD/JPY head higher, but will haven demand continue to wane or could we be due another dollar resurgence?
EUR/USD rolling over as bears return
EUR/USD has been on the back foot for much of the past four months, with the pair falling back into a 14-month low last week. While easing dollar haven demand saw the pair regain lost ground later into the week, we are already seeing the bears come back into play here.
A break up through the $1.164 level would bring about a potential move into trendline resistance. However, there is a good chance that we see the bears come back into prominence before long, with a break below $1.1524 bringing a clear end to this retracement phase.
GBP/USD breaking higher as BoE gear up to hike
GBP/USD has been on the rise of late, with the pair breaking through $1.375 resistance on Friday. Comments from Governor Bailey over the weekend built the case for the 2021 rate hike, with rising inflation clearly a concern. There is still a possibility we are watching a bearish retracement here, with the 76.4% Fibonacci resistance level up ahead to consider ($1.3795).
However, with the pair on the rise, it makes sense to follow the intraday uptrend until we see that broken. With that in mind, bullish positions are favoured above the $1.3667 swing low.
USD/JPY uptrend continues, with bulls expected to remain in charge
USD/JPY has been pushing higher over the course of the past month, with the pair reaching a fresh three-year high. This bullish trend has taken us back in towards the 2018 high of ¥114.56. That path does look likely to continue unless we see the price fall back below the ¥113.21 swing low.
With resistance up ahead, a break through ¥114.56 would bring about a fresh buy signal. Meanwhile, a drop back below the ¥113.21 level would bring about a fresh short-term bearish signal for the pair.
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
