EUR/USD and GBP/USD aim to recover as USD/JPY risks new turn lower

Yesterday’s dollar strength has eased off slightly, allowing GBP/USD in particular to make early gains.

Transcript

EUR/USD steadies after recent losses

The three-day move lower has seen EUR/USD break through two rising trendlines, but as the dollar bounce eases the pullback in EUR/USD has slowed as well.

Two days of lower highs and lows, following on from Thursday’s drop, suggested the sellers were in charge, but this brief pullback could end if the price manages to hold above yesterday’s low at $1.213 and then pushes back above $1.218.

GBP/USD rallies off Monday’s low

GBP/USD has already begun to show signs of strength, recovering to move back above $1.35.

Support at $1.347 held and allowed the price to edge higher, suggesting that an attempt to recover and break the past week’s series of lower daily highs is now underway. A reversal back below $1.345 would negate this view.

USD/JPY sees gains stall above 50-day SMA

Like so many rallies before it, the USD/JPY has reached and pierced the 50-day simple moving average (SMA) of ¥104.00. However, it has been unable to hold on to most of the gains made above this level.

A reversal below the 50-day SMA would suggest that a new leg lower is underway, following the creation of a lower high. This could bring the January low of ¥102.60 back into view.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.