EUR/USD and GBP/USD in retreat as USD/JPY rises
The dollar weakened overnight, but downtrends in EUR/USD and GBP/USD are reviving as USD/JPY looks to move higher.
EUR/USD bounce runs out of room
EUR/USD has rebounded from the lows of yesterday, but the bounce may be about to run out of steam already, as the price hits the $1.08 level and encounters the 50-hour simple moving average (SMA) at $1.082.
Fresh declines target yesterday’s low at $1.065, while a continued push above $1.085 heads towards $1.095 and the Wednesday to Thursday overnight highs.
GBP/USD clears Thursday’s high for now
GBP/USD has also bounced from the lows and managed to push above Thursday’s peak of $1.179.
Further gains head towards $1.2314, while a resumption of the downward trend brings the week’s low at $1.143 into view.
USD/JPY drops back but further gains expected
The dollar bounce has eased off a touch, but USD/JPY remains firmly in its uptrend, having recovered almost all the losses of late February and early March.
The next big target is ¥112.00, resistance from February 2019 and 2020. Above this, is ¥113.64. A push below ¥109.00 suggests a drop towards ¥108.60, although even this may not spell the end of the bounce.
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.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
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.