EUR/USD and GBP/USD rally while USD/JPY edges lower
Sterling is bouncing in the short term, while the euro is fighting to hold $1.12.
EUR/USD bounces from $1.12
EUR/USD continues to rally from $1.12, as this level is still holding as support. Gains have stalled at $1.128, so a move above this level is needed to open the way to $1.132 and the 200-day simple moving average (SMA).
Trendline resistance from the June high would be found at $1.125, providing another hurdle to a break higher. Bears need to push the price below $1.12 to start a deeper pullback, targeting $1.112.
GBP/USD recovers from lower low
GBP/USD has rallied off its lows over the past 24 hours, but the overall downtrend is still firmly in place.
A rebound towards $1.26 would challenge the peak from earlier in the week, and then provide another possible selling opportunity. This would also take the price back to trendline resistance from the May peak. The bearish view likely remains in place until the price moves back above $1.262.
USD/JPY bounces from support
USD/JPY’s dips to ¥107.60 continue to find support, as we have seen so far today.
The price is also in a possible bullish wedge, with a slowing pace of declines seen over the past week. A rally to ¥108.10 would hit trendline resistance from the 11 July high. Below ¥107.50, the price heads towards ¥106.80.
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.
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. Please see important Research Disclaimer.
Please also note that 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.
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