FX snapshot ̶̶ GBP/USD, EUR/USD, USD/JPY, USD/CAD

The pound continues to look robust, while the euro is still in a downward move versus the US dollar. 

Dollar and pound
Source: Bloomberg

GBP/USD prevented from moving upwards

Cable continues to respect the rising hourly trendline but so far is unable to make much progress above $1.56. Yesterday we saw it spike towards $1.57, but the resistance zone (red box on hourly chart) that has held back gains since mid-July is still preventing real moves upwards for the time being.

The really bullish development would be a close above $1.5680, but so long as we remain above the 200-hour SMA ($1.5573) then I will still be cautiously bullish. 

EUR/USD could see a move back to month lows

Having been unable to push on beyond $1.11, EUR/USD has fallen back to the 200-hour SMA at $1.0970.

The rising hourly trendline that supported gains for a time was lost yesterday, so now we look for a move back to the lows of the month just above $1.08.

Daily stochastics have yet to turn firmly bearish, but another weak close today will complete the picture. 

USD/JPY could target ¥125.80

The dollar continues to strengthen here, with gains over the past three sessions pushing it back towards key resistance around ¥124.20. A breakout above this level for USD/JPY would head towards the June highs around ¥125.80.

A turn lower would need to break below the 50-day SMA at ¥123.45, this indicator having provided support during the course of the past week.

USD/CAD eyes 200-hour SMA

US dollar bears managed to push the pair below C$1.29 yesterday, but this proved to be a short-lived move, with a firm recovery in place today. The pair now needs to break above the 200-hour SMA at C$1.2994 to confirm that the move higher is still in place.

A failure to maintain moment today will call into question the lows seen on Wednesday, and may cause the outlook to switch back to being firmly bearish for USD/CAD.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.