EUR/USD and GBP/USD feel heat from stronger US dollar, while USD/JPY holds around ¥109
GBP/USD is on the back foot this morning while USD/JPY ponders its next move after a huge rally.
EUR/USD mixed in early trading
The buyers seem to have handed back control to the sellers in this EUR/USD pair, as the gains of last week are given back and the attempt to recover $1.20 fizzles out.
The 200-day SMA at ($1.1837) is now in sight once more, and buyers will be hoping it can hold as it did a week ago. Sellers will be looking for a push below this that then brings $1.1612 into view over the course of time. A rally back above Friday’s high at $1.1986 is needed to put the pair back on an upward course.
GBP/USD reversal in progress
In cable too the bounce of last week is now a distant memory, and the 50-day simple moving average (SMA) ($1.3797) is likely to be tested as dollar strength pushes the GBP/USD pair lower.
This then brings the $1.37 area into view once again, while below this the $1.35 zone is the next area to watch for possible support. The buyers seem to have lost the upper hand here, and will need to get the price back above $1.40 to reverse this growing bearish short-term view.
USD/JPY holds firm around ¥109
The USD/JPY pair shrugged off last week’s temporary drop and has continued to hold above steep trendline support from the late February-low.
Further gains take it on towards ¥109.50, but it must be wondered how long this sharp ascent can continue. Nonetheless, the price is providing little indication of any reversal as yet, with the buyers still firmly in control. A move back below ¥108.50 is need to provide an indication of a bigger retracement.
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.