EUR/USD under pressure while GBP/USD holds steady and USD/JPY rallies
More poor eurozone data continues to hit EUR/USD, while dollar strength lifts USD/JPY. The pound remains relatively quiet a day after the announcement of Boris Johnson as the new UK PM.
EUR/USD still on the back foot
Hopes of a rebound were dashed as the EUR/USD price continued to fall yesterday, moving towards the $1.112 support zone. A possible rebound from this level would head towards $1.12 (previous support) and then on to $1.13.
The downtrend on the hourly chart is still firmly in place, so rebounds to work off the current oversold conditions may merely be fresh selling opportunities. The price has shown little ability to hold above the key moving averages on the hourly chart, so until this changes the sellers remain in control.
GBP/USD aims to create a higher low
Yesterday’s GBP/USD losses were stemmed around $1.243, which may see the creation of a higher low, but now a rebound needs to move above $1.255/$1.26, which held back progress in mid-July.
Further declines head towards $1.238, as the price resumes its downward move.
USD/JPY pushes higher
USD/JPY has been climbing steadily over the past few days, and may well be establishing a new higher low as it drops back from the highs of the week at ¥108.30.
If it can hold above ¥107.80 then the bullish view remains intact, and a fresh move higher may develop. The current bullish view, which builds on the 5 July breakout from trendline resistance, would only be impaired if the price drops back below ¥107.20.
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.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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