EUR/USD moves up while GBP/USD edges lower and USD/JPY downtrend reasserts itself
The bounce in EUR/USD seems set to continue, while GBP/USD stalls and USD/JPY pushes down after Monday’s failed recovery.
EUR/USD makes further gains
EUR/USD has continued to move higher for the past three sessions, having found support around $1.1775 last week and creating a higher low.
This helped to reinforce the more bullish view that has emerged since the beginning of the month. Further gains target $1.19, but a break above this level is still needed for a more bullish longer-term view to emerge.
GBP/USD gains stall for now
Friday’s recovery maintained the uptrend in GBP/USD, but some momentum is fading as we move further into the week.
Having created a new higher high last week the longer-term upward move is not yet in peril, but a drop below $1.31 would bring another test of rising trendline support into view. A renewed move higher targets $1.33, the high from last week.
USD/JPY downtrend back in play
USD/JPY has moved back below the 50-day simple moving average (SMA) of ¥105.13, creating another lower high and maintaining the long-standing downtrend.
Yesterday’s attempted rally back towards the 50-day SMA was quickly defeated and further losses have been seen since then. Further declines will target ¥103.50, while a move above ¥105.50 is required to reverse the ongoing negative view.
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
- Forex
- Shares
- Indices
