EUR/USD rallies as GBP/USD and USD/JPY struggle
A break higher for EUR/USD contrasts with continued weakness for GBP/USD and USD/JPY.
EUR/USD breaks resistance
EUR/USD has succeeded in breaking higher, pushing above trendline resistance yesterday. Gains however have stalled for now at $1.133, as they did at the beginning of the month.
Broader upside would require a move above $1.135, but the longer-term downtrend remains in place.
GBP/USD continues to struggle
Unlike EUR/USD GBP/USD remains under pressure, hit by changing expectations of a UK rate hike and the return to some Covid-19 restrictions.
The yawning gap between the price and the 50-day simple moving average (SMA) above $1.35 refuses to close, and so far there looks like no sign of a move to the upside, which would require at least a move back towards $1.33.
USD/JPY edges lower
Gains with USD/JPY have stalled at ¥113.60, as the price retreats back below the 50-day SMA. This drop will need to move below ¥113.00 to indicate the sellers are back in control.
Alternately, the bullish view is revived with a move back above ¥113.80.
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
