Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​Dollar strength holds back EUR/USD and GBP/USD, but USD/JPY makes further gains​

​​The week has begun with more upside for the dollar, resulting in gains for USD/JPY while the euro and sterling are both struggling against the greenback.

Dollar Source: Bloomberg

​​​EUR/USD stuck below $1.09

​The bounce of EUR/USD remains in place here, although the price has demonstrated a notable reluctance to push on above $1.09.

Recent attempts to push above $1.09 have been unsuccessful, but the rally from the lows of March is still in place. This leaves the bullish outlook intact and points towards an eventual move towards the late January highs around $1.10.

​​For a more bearish view to take precedence, the price will have to drop below the 100-day simple moving average (SMA) once more, and then below the $1.055 lows from the first half of March.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD falls back from $1.24

​The surge off the lows of March encountered a reverse on Friday of GBP/USD, though buyers have pushed the price off its initial Monday lows.

​At some point, the price will need to decide whether it can move on above $1.24, the major hurdle since December. Having revived since the March lows and moved on above the 100-day and 50-day SMAs, the buyers appear in control for the time being, even if a break above $1.24 continues to elude them.

​For the moment the bullish view holds sway; It would need a move back below $1.21 to move the outlook to neutral, and below $1.18 for a bearish view to emerge.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY reaches 100-day SMA

​A revived US dollar has seen USD/JPY push higher over the past week, creating a higher low vis-à-vis January.

​Having cleared the downtrend from the March highs, the price is now challenging the 100-day SMA. Above this the next target would be the 200-day SMA, last tested in the first week of March. A move above here considerably reinforces the bullish view.

​​Sellers will want to see a reversal back below ¥132.00 and then on below the ¥130.00 level to suggest that the bearish outlook is back in the ascendant.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.