EUR/USD steadies after pullback, while GBP/USD and USD/JPY climb

EUR/USD is finding some support after recent losses, and GBP/USD and USD/JPY continue to rise.

Transcript

EUR/USD edges back above 50-day SMA

EUR/USD's pullback has given short-term shorts a chance while also helping to create a higher low and confirm the continuation of the uptrend.

The recovery above the 50-day simple moving average (SMA) of $1.2078 is a good first step, and will help reinforce the impression that further gains in the direction of $1.23 and higher are likely. A reversal below $1.205 would point towards renewed weakness in the near term.

GBP/USD recovers $1.36

GBP/USD’s choppy pattern continues, but once again the price has recovered after some brief weakness.

As the price neared $1.35, buyers came in to drive the price back up, creating a higher low. Renewed gains target $1.37, while a revival of the bearish case requires a reversal back below $1.35 and then below last week’s low at $1.345.

USD/JPY clings on near ¥104

As in previous lower highs, USD/JPY continues to fight hard to hold around the 50-day SMA (¥103.97).

Short-term resistance would come into play at ¥104.08, while rising support over recent days has prevented any significant downside. A drop below ¥103.50 would confirm the view of the current bounce as forming a lower high, while gains above ¥104.40 may point towards further strength.


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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.