Dollar strength propels EUR/USD and GBP/USD lower, while USD/JPY rockets through key level
EUR/USD drops for a second day
After rallying early on Tuesday the EUR/USD price reversed course, falling back below the declining 50-day simple moving average (SMA).
If this marks a lower high then a renewed fall below $1.053 would then see the price fall towards its October lows, and reinvigorate the downtrend. Buyers will need a move back above $1.065 to indicate a potential recovery has begun.
GBP/USD edges lower
The GBP/USD also saw its (more limited) gains ebb away on Tuesday, leaving it hovering just above $1.21. This area provided some support over the past two weeks, but the ongoing failure to break higher seems to point towards a renewed run of losses that could see the pair head towards $1.20.
A break above $1.22 would see the price push on above short-term trendline resistance from the mid-October high, and also above trendline resistance from the July peak.
USD/JPY hits new 2023 high
Yesterday saw the USD/JPY surge through the ¥150.00 barrier, closing above it and above ¥151.00,
This has resulted in a bullish moving average convergence/divergence (MACD) crossover, as momentum revives, but could result in volatility given the challenge to the Japanese finance ministry’s previous comments about supporting the yen around ¥150.00. Nonetheless, a break towards the 2022 highs just below ¥152.00 is now underway.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
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
- Try a risk-free trade
- 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
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
