EUR/USD and GBP/USD recover as USD/JPY falters
Some pre-election weakness has hit the dollar, allowing the euro and sterling to recover some lost ground, while USD/JPY’s bounce from last week’s lows may have run its course.
EUR/USD rallies off support
After holding below the 100-day simple moving average (SMA) yesterday the EUR/USD pair is moving up again this morning, with a renewed push higher targeting $1.188, the high from the latter part of October.
It has managed to rally from around $1.162, the same area that held in late September, bolstering the bullish view for the time being. A reversal below $1.16 would negate this view.
GBP/USD reverses course
GBP/USD also moved below its 100-day SMA ($1.2883) yesterday, but buyers arrived to prevent a close below this indicator, and we have seen some further bullish momentum this morning that increases the chance of a renewed move higher in the uptrend from the September lows.
This would bring $1.315 into view. A move below $1.286, support over the past three weeks, is needed to hand the initiative to the sellers.
USD/JPY weakens after three-day gain
Here the price of USD/JPY rallied off the lows of last week, but already what limited bullish momentum there was is slipping away.
A rally towards ¥105.00 yesterday found sellers ready to push the price lower, with some follow-through this morning. With momentum still weak a reversal below ¥104.50 could mark another push lower that takes the price below ¥104.00, a level of support since the end of July.
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.
Live prices on most popular markets