EUR/USD and GBP/USD weaken as USD/JPY bounce gathers pace
Dollar strength has lifted USD/JPY, whose rally has entered a third day, but EUR/USD and GBP/USD are retreating.
EUR/USD moves lower
EUR/USD managed to break out of a short-term descending channel at the end of last week, but gains stalled yesterday below $1.19.
If the buyers are to really reassert control then a move above $1.19 and then $1.196 would be required, clearing the way for a bigger move to the upside. Sellers will hope that the price will turn back lower and target last week’s lows near $1.175.
GBP/USD falters at $1.39
With GBP/USD having recovered to an extent, and continuing to hold the $1.375 area, the price now looks for a move back towards $1.40.
Friday’s bounce was a powerful thrust, and dealt a blow to the bearish view. While there wasn’t much movement yesterday at least it held its ground, providing a base for further gains.
USD/JPY bounce enters a third day
Five days of losses with USD/JPY brought the price back to the 50-day simple moving average (SMA) currently ¥109.85, where a defence was mounted and a new bounce appears to have begun.
Further gains target the peak from the beginning of the month, towards ¥111.57. A renewed bearish view requires a move back below last week’s higher low and then below ¥109.55.
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.