EUR/USD and GBP/USD rally as USD/JPY bounce hits resistance
EUR/USD and GBP/USD continue to enjoy a bounce, while the USD/JPY rally is reaching a critical point.
EUR/USD edges up
The EUR/USD pair continues its recovery from the lows of late September, returning to the 50-day simple moving average (SMA) of $1.18.
It has now run back into trendline resistance from the early September high – a reversal below $1.1742, the high from Friday’s session, would suggest a new lower high had been created. Further gains target $1.19 and then $1.195.
GBP/USD back to mid-September highs
The rebound here from the 200-day SMA in late September has carried the GBP/USD pair back to the $1.30 level of mid-September.
Further gains target $1.3039, the 50-day SMA, and a crucial area of horizontal resistance. Above this, $1.32 comes into view. A reversal below $1.29 could signal that another move back towards $1.27 is in the offing.
USD/JPY clings to 50-day SMA
A recovery from the September lows has seen the price of USD/JPY move back to the 50-day SMA at ¥105.76.
Further gains from here would mark a potential change of outlook, given the downtrend that has been in place since late June, and could bring ¥106.40 into view. If the ongoing downtrend prevails then we look for a bearish crossover of stochastics or moving average convergence divergence (MACD) that will signal a possible lower high and see the pair head back towards ¥105.00 and potentially lower.
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