EUR/USD, GBP/USD and USD/JPY all moving lower
We have seen some weakness in EUR/USD, but GBP/USD has managed to hold above trendline support. Meanwhile, USD/JPY is heading back to a key area of support.
EUR/USD falls for another day
After moving below the 50-day simple moving average (SMA) at $1.179 earlier in the week, the EUR/USD price has continued its downward move.
It has broken one trendline support level, that from the September low, and now heads towards the 100-day SMA ($1.1652). A recovery above $1.175 might suggest a possible reversal and recovery of trendline support that might bring $1.186 and higher into view.
GBP/USD rallies above trendline support
For GBP/USD, a drop below trendline support from the September low found buyers yesterday, and while the price has continued to fall and establish another lower high so far today a bounce seems to be in the offing.
This more bullish view would target last week’s peak towards $1.315, while a reversal below $1.293 could help give the sellers further ammunition.
USD/JPY heads back to ¥104.00
Although it bounced overnight, the USD/JPY price has now started to move back towards ¥104.00, the crucial area of support that has held twice before since August.
Sellers should be on watch for any possible reversal out of this area that then brings the potential for a rebound towards the declining 50-day SMA (¥105.50). A break below ¥104.00 could suggest a new push to lower lows, providing further impetus to the ongoing downtrend.
IGA, may distribute information/research produced by its respective foreign affiliates 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.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.
Please see important Research Disclaimer.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.