EUR/USD and GBP/USD look to move higher, as USD/JPY rebounds from Monday’s low

The euro and sterling have both edged up against the dollar, while the buyers have come in to support USD/JPY after yesterday’s sudden and brief dip.

Transcript

EUR/USD hovers below recent highs

EUR/USD has moved back to the $1.216 zone that marked the high since the end of November.

Once again a small dip has been bought, putting the pair back on an upward course that looks set to challenge $1.2214 and then $1.2413, a level last seen in the first half of 2018. For sellers, a close below $1.206 from last Wednesday could open the path to more downside.

GBP/USD knocked back from recent highs

The GBP/USD pair has bounced back from last Friday’s lows below $1.32, but while it continues to move higher, Monday’s surge above $1.34 brought out the sellers, creating the third long wick to the upside since early December.

This suggests a gloomier near-term outlook, with bulls unable to hold the highs. A close above $1.34 would start to revive a more bullish view, targeting $1.347 in the near-term. Alternatively, sellers need to drive the price below $1.32, and then below the 50-day simple moving average (SMA), to reverse the higher low created on Friday.

USD/JPY rallies from Monday low

USD/JPY has held firm above ¥103.60 since mid-November, and Monday’s dip below this level to ¥103.50 merely confirmed the strength of support, with a quick bounce from this level developing.

However, while buyers can be pleased with this effort, they now need to clear ¥104.60, the upside resistance that has also held since the second half of November. For the time being, the range trade continues.

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.