EUR/USD and GBP/USD aim to recover as USD/JPY risks new turn lower
Yesterday’s dollar strength has eased off slightly, allowing GBP/USD in particular to make early gains.
EUR/USD steadies after recent losses
The three-day move lower has seen EUR/USD break through two rising trendlines, but as the dollar bounce eases the pullback in EUR/USD has slowed as well.
Two days of lower highs and lows, following on from Thursday’s drop, suggested the sellers were in charge, but this brief pullback could end if the price manages to hold above yesterday’s low at $1.213 and then pushes back above $1.218.
GBP/USD rallies off Monday’s low
GBP/USD has already begun to show signs of strength, recovering to move back above $1.35.
Support at $1.347 held and allowed the price to edge higher, suggesting that an attempt to recover and break the past week’s series of lower daily highs is now underway. A reversal back below $1.345 would negate this view.
USD/JPY sees gains stall above 50-day SMA
Like so many rallies before it, the USD/JPY has reached and pierced the 50-day simple moving average (SMA) of ¥104.00. However, it has been unable to hold on to most of the gains made above this level.
A reversal below the 50-day SMA would suggest that a new leg lower is underway, following the creation of a lower high. This could bring the January low of ¥102.60 back into view.
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.
