EUR/USD and GBP/USD aim to recover as USD/JPY risks new turn lower
Yesterday’s dollar strength has eased off slightly, allowing GBP/USD in particular to make early gains.
EUR/USD steadies after recent losses
The three-day move lower has seen EUR/USD break through two rising trendlines, but as the dollar bounce eases the pullback in EUR/USD has slowed as well.
Two days of lower highs and lows, following on from Thursday’s drop, suggested the sellers were in charge, but this brief pullback could end if the price manages to hold above yesterday’s low at $1.213 and then pushes back above $1.218.
GBP/USD rallies off Monday’s low
GBP/USD has already begun to show signs of strength, recovering to move back above $1.35.
Support at $1.347 held and allowed the price to edge higher, suggesting that an attempt to recover and break the past week’s series of lower daily highs is now underway. A reversal back below $1.345 would negate this view.
USD/JPY sees gains stall above 50-day SMA
Like so many rallies before it, the USD/JPY has reached and pierced the 50-day simple moving average (SMA) of ¥104.00. However, it has been unable to hold on to most of the gains made above this level.
A reversal below the 50-day SMA would suggest that a new leg lower is underway, following the creation of a lower high. This could bring the January low of ¥102.60 back into view.
This information has been prepared by IG, a trading name of IG Markets 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.
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