EUR/USD holding support, while GBP/USD and USD/JPY are under strain

While EUR/USD is trying to hold key support, cable and USD/JPY are turning lower, as risk aversion grips markets once again.

EUR/USD fights to hold key support

The EUR/USD price continues to hold above $1.10, giving hope to the bulls that the pair is poised to rebound once more from this level, as it did in November.

Swing traders may look to take advantage of this defence of support, although over the week so far the hourly chart has seen the price unable to move above $1.103. As noted on Tuesday, a possible bullish wedge is in play, but we have yet to see much upside momentum that might signal the buyers have regained control. For now, the price is stuck in no-man’s land, so we wait for a break above $1.103 or below $1.099.

GBP/USD slips lower in early trading

Early trading has seen the GBP/USD price dip down towards $1.2975, the lows of the past week, and close to rising trendline support from the September-low.

A break below this brings $1.277 into view, and would imperil the more bullish view that has been in place since October. Gains this week have been contained around $1.303, so any bigger rally first needs to clear this level, which would also see it move above the 50-hour simple moving average (SMA) at $1.3013.

USD/JPY back to Monday lows

The attempted rebound earlier in the week has fizzled out, and the USD/JPY price finds itself back at the lows from the very beginning of the week.

The sequence of lower highs remains in place, and so now we wait to see if the sellers can break support around ¥108.80. This would bring ¥108.30 into view. A rebound requires the price to move back above ¥109.20, where gains stalled earlier in the week.

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.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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.