EUR/USD still rallying, as GBP/USD and USD/JPY drop back

While EUR/USD continues to climb in the wake of the ECB meeting, GBP/USD is slipping lower and USD/JPY has now moved into a ranging phase.

EUR/USD still in uptrend

We have seen EUR/USD establish a lower high, dropping back after a sharp bounce ahead of yesterday’s European Central Bank (ECB) meeting. But losses have been contained around $1.138, and a fresh push higher may target $1.142 and short-term trendline resistance.

There is little sign of a bigger change in trend, which would likely need a reversal below $1.132 in the first instance.

GBP/USD looks for support

Having established another lower high, GBP/USD is now testing rising trendline support from Tuesday’s low. This held yesterday, but if we see continued losses, the bearish view will receive further reinforcement.

A more bullish view needs to see the price recover above $1.26 and then take out trendline resistance around $1.262.

USD/JPY falters at resistance again

Despite the rebound from ¥106.70 for the third time in just over a week, the best that can be said for USD/JPY is that the downtrend from the beginning of the month has now moved into more of a range-bound phase.

Dips towards ¥106.70 have found buyers but gains have run out of steam some 70 points higher. For the moment, this range looks to be the way to look at USD/JPY, with a break higher or lower needed to establish, or indeed re-establish, a trend.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.