Dollar strength pushes EUR/USD and GBP/USD lower but bolsters USD/JPY back above ¥150.00
After weakening in the wake of the Fed decision, the US dollar has revived, causing the euro and sterling to give back some of their recent gains, and lifting the dollar back above a key level against the yen.
EUR/USD weakens as dollar recovers
The price with EUR/USD has dropped back below $1.07, though the short-term bounce from the October lows is still in place.
We may see some support around the $1.067 level, the high from late October, or at the 50-day simple moving average (SMA), that may preserve the bounce and see fresh buying pressure emerge.
A move back above $1.07 would help to restore the bullish view and see the price resume its progress towards the 200-day SMA.
GBP/USD in retreat
Early trading with GBP/USD on Wednesday saw the price fall back below its 50-day SMA, and back below the early-October highs.
Additional declines now target the $1.22 area, and then down towards previously-broken trendline resistance. This may then act as support for the pair, though a close below this and below $1.21 would clearly leave the sellers in charge.
Bulls will need a close back above the 50-day SMA that can open the way to another attempt to challenge the 200-day SMA.
USD/JPY moves back above key level
USD/JPY is back above ¥150.00 once again, clawing back some of the losses from last week.
Whether this will bring fresh intervention remains to be seen, but for the moment the buyers are in charge once again. Additional gains continue to target the ¥152.00 level.
A close back below ¥149.00 is needed to suggest a short-term pullback is now beginning.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
