EUR/USD holds firm while GBP/USD rallies

EUR/USD is still stuck in a narrow range, but is holding its gains, while GBP/USD is continuing to bounce from the lows of the week.

EUR/USD hovers just below $1.12

Bullish momentum has continued to fade for EUR/USD, although a full-blown reversal has still not appeared.

Dips to $1.11 have found buyers for now, with the price yet to establish a lower high intraday. Thus we enter a consolidation phase after the sharp bounce. A break below $1.11 might point to a resumption of the longer-term downtrend, and by contrast a surge through $1.12 revives the current bounce.

GBP/USD rebound brings trendline resistance closer

GBP/USD has steadily climbed from the low of the week, but any bounce that fails to clear $1.30 and the mid-February lower high risks creating another lower high and reaffirming the post-election downtrend.

A fresh turn lower targets $1.275, and then below this a new lower low is created.

USD/JPY heads back to week’s lows

While equities continue to recover, USD/JPY is still languishing near the lows of the week.

Yesterday’s bounce to ¥107.70 ran out of steam, and while the price for now continues to hold above ¥107 it looks like only a matter of time before this is broken and the price heads to ¥106.50.

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.

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

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.