EUR/USD still rallying, as GBP/USD and USD/JPY drop back
While EUR/USD continues to climb in the wake of the ECB meeting, GBP/USD is slipping lower and USD/JPY has now moved into a ranging phase.
EUR/USD still in uptrend
We have seen EUR/USD establish a lower high, dropping back after a sharp bounce ahead of yesterday’s European Central Bank (ECB) meeting. But losses have been contained around $1.138, and a fresh push higher may target $1.142 and short-term trendline resistance.
There is little sign of a bigger change in trend, which would likely need a reversal below $1.132 in the first instance.
GBP/USD looks for support
Having established another lower high, GBP/USD is now testing rising trendline support from Tuesday’s low. This held yesterday, but if we see continued losses, the bearish view will receive further reinforcement.
A more bullish view needs to see the price recover above $1.26 and then take out trendline resistance around $1.262.
USD/JPY falters at resistance again
Despite the rebound from ¥106.70 for the third time in just over a week, the best that can be said for USD/JPY is that the downtrend from the beginning of the month has now moved into more of a range-bound phase.
Dips towards ¥106.70 have found buyers but gains have run out of steam some 70 points higher. For the moment, this range looks to be the way to look at USD/JPY, with a break higher or lower needed to establish, or indeed re-establish, a trend.
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.