EUR/USD, GBP/USD and USD/JPY all moving lower
We have seen some weakness in EUR/USD, but GBP/USD has managed to hold above trendline support. Meanwhile, USD/JPY is heading back to a key area of support.
EUR/USD falls for another day
After moving below the 50-day simple moving average (SMA) at $1.179 earlier in the week, the EUR/USD price has continued its downward move.
It has broken one trendline support level, that from the September low, and now heads towards the 100-day SMA ($1.1652). A recovery above $1.175 might suggest a possible reversal and recovery of trendline support that might bring $1.186 and higher into view.
GBP/USD rallies above trendline support
For GBP/USD, a drop below trendline support from the September low found buyers yesterday, and while the price has continued to fall and establish another lower high so far today a bounce seems to be in the offing.
This more bullish view would target last week’s peak towards $1.315, while a reversal below $1.293 could help give the sellers further ammunition.
USD/JPY heads back to ¥104.00
Although it bounced overnight, the USD/JPY price has now started to move back towards ¥104.00, the crucial area of support that has held twice before since August.
Sellers should be on watch for any possible reversal out of this area that then brings the potential for a rebound towards the declining 50-day SMA (¥105.50). A break below ¥104.00 could suggest a new push to lower lows, providing further impetus to the ongoing downtrend.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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