EUR/USD and USD/JPY fall as GBP/USD moves sideways
EUR/USD’s sharp bounce has firmly ended now, and we are seeing further downside for this pair, as well as for USD/JPY.
EUR/USD downtrend intensifies
The direction of travel for EUR/USD over the past three sessions has been downward, with the price forming lower highs and lower lows.
Short-term trendline resistance may come into play around $1.098, while further declines below $1.09 head towards $1.075 and then $1.064. Above $1.098 the price targets $1.105, the previous lower high, and then on to $1.115 and the highs from 30 March.
GBP/USD drifts sideways
GBP/USD has moved sideways over the past week in a tightening range, so far unaffected by the modest renewal in USD strength.
Losses below $1.23 have been prevented, with buyers stepping in to defend this area, while any rally above $1.24 of late has proven short-lived. Below $1.23, risks a revival of the downward move towards $1.16, while above $1.24 the price heads towards $1.2635 and then $1.277.
USD/JPY under pressure
The move lower for USD/JPY looks to be resuming, as the price manages only a slight bounce from the lows of yesterday.
A drop below ¥107.00 would confirm the more bearish view and suggest a deeper decline towards ¥105.00. A more bullish view requires a substantial revival, targeting the ¥108.60 highs from earlier in the week.
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.