Headaches in Forex as Conditions Prove Tough: EUR/USD, USD/JPY and GBP/USD

The Euro, Yen, and Pound have all remained under pressure from the strong U.S Dollar this week. Before going into the weekend speculators are likely to look for reversals, but forex has proven challenging this week and risk management is needed.

Pressure on Euro Building

The Euro has stayed under pressure this week and is nearing what many speculators consider important support around 1.17 against the U.S Dollar.

Traders with a taste for adventure and the belief the Euro has been oversold may be tempted to buy the Euro and look for upside movement going into the weekend. However, it should be remembered that the European Central Bank President Draghi is speaking in London on Friday.

Yen Weakness Contagious?

As the Nikkei Index continues show risk appetite among Asian investors for equities, the Yen has continued to grow weaker against the U.S Dollar and is battling the 113.00 level.

The Yen’s weakness is testing July resistance, and the buying of the U.S Dollar against the Japanese currency appears to be contagious among speculators. The Yen will provide more fireworks before the weekend.

More Rumblings in Pound Likely

The Pound has continued to sell off, but remains within its strong mid-term value range. The British currency has important support near 1.3350 against the U.S Dollar.

Bank of England Governor Mark Carney will be speaking these next two days in London and will impact trading. The Pound’s recent success has been put to the test, while some speculators may believe the Pound will rebound in the near term, risk management will be essential.

In the short term, we believe the Euro may remain negative, the Yen will be weaker, and the Pound may continue to see selling. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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