EUR/USD holds support and USD/JPY hits resistance, while GBP/USD pushes higher
Forex markets are quiet ahead of ECB minutes and tomorrow’s key Jackson Hole speech, but some improvement in PMIs has helped EUR/USD to hold support.
EUR/USD holds above $1.107
For the moment the EUR/USD pair continues to find support around $1.107, as it did in early August.
A rally would require a move above $1.111, which has acted as resistance throughout the week. If this is accomplished then the $1.125 zone comes into play as a possible target to the upside. A move below $1.105 negates this more bullish thesis and signals that a move towards $1.085 is underway.
GBP/USD still on the up
GBP/USD continues to adhere to rising trendline support from the 12 August low, pushing higher after a retracement from yesterday’s peak.
This short-term rebound would likely encounter resistance around $1.22 in the short term. A move below $1.21 begins to negate this more positive outlook, and a close below the Tuesday low of $1.2063 would hand the initiative to the bears.
USD/JPY looks to test resistance
The USD/JPY pair continues to be stuck below ¥106.70, the area of resistance that has held for over a week.
But with higher lows in place over the past few days. A push through ¥106.80 would provide a more bullish view, leading the price on towards ¥107.50 and then on to ¥108.50. The short-term bullish view would remain in place unless the price moves back below ¥106.00, in which case the longer-term bearish view reasserts itself.
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.