EUR/USD and GBP/USD continue to bounce, while USD/JPY recovers from overnight weakness
The morning has seen early gains for the euro and sterling against the US dollar, while against the yen the greenback is aiming to push higher.
EUR/USD in volatile mood
Monday’s decline was almost as dramatic as the surge on Friday for EUR/USD.
A higher low has been created around $1.11, providing a potentially bullish development. Further gains above $1.112 would target $1.115, beginning to carve out an uptrend. A reversal below $1.107 negates this more bullish view.
GBP/USD still in steady uptrend
The pound has enjoyed an excellent rally over the past three weeks, and shows no sign of stopping yet. Strong buying has seen the price for GBP/USD rally from $1.22, with dip buyers entering and pushing the price upwards.
A move back below $1.22 would be a more bearish development, putting the price below the newest higher low and back below resistance from early August.
USD/JPY pulls back from overnight peak
A sharp rally on Monday was followed up by some profit-taking for USD/JPY, but if the price can find a base around ¥105.60 then a higher low may be created.
Further declines would head towards ¥105.00. If a higher low is created around ¥105.60 then the mid-August peak around ¥106.70 is the next target.
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