EUR/USD and GBP/USD rally while USD/JPY retreats
The euro has rallied following better economic data yesterday, while GBP/USD is back to the highs of the past two months.
EUR/USD rallies to mid-November high
While other markets sold off yesterday, EUR/USD rallied, returning to the $1.109 high from mid-November.
A close above this level would mark a bullish development, coming after the double bottom around $1.099. Further gains target $1.115 and the highs from the end of October, along with the 200-day simple moving average (SMA) at $1.1164. A more bearish view requires a move below $1.099, which might then open the way back to the September low below $1.09.
GBP/USD back to recent highs
A steady progression of higher lows in the GBP/USD price over the past two weeks has provided entry points for fresh longs.
The price itself has returned to the $1.297 highs that has held since mid-October. We have yet to see a firm breakout, but with daily stochastics rising we could be watching a momentum shift in favour of the buyers. $1.30 and $1.32 come into play if the price can finally break higher.
USD/JPY falls towards 200-day SMA
The turn in risk sentiment yesterday has been reflected in USD/JPY which fell back towards the 200-day SMA (¥108.89) yesterday.
We have seen negative divergence between price and stochastics since September, with the price making new higher highs which are not reflected in stochastics, but overall the trend higher has been quite resilient. An overnight bound to ¥109.20 is being faded this morning, and a move back below ¥108.90 would break yesterday’s low and bring ¥108.25 into play. If the price can move back above ¥109.20 then a more short-term bullish view may develop, with the highs at ¥109.70 coming into play.
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.