EUR/USD, GBP/USD and USD/JPY all moving lower
We have seen some weakness in EUR/USD, but GBP/USD has managed to hold above trendline support. Meanwhile, USD/JPY is heading back to a key area of support.
EUR/USD falls for another day
After moving below the 50-day simple moving average (SMA) at $1.1790 earlier in the week, the EUR/USD price has continued its downward move.
It has broken one trendline support level, that from the September low, and now heads towards the 100-day SMA ($1.1652). A recovery above $1.175 might suggest a possible reversal and recovery of trendline support that might bring $1.186 and higher into view.
GBP/USD rallies above trendline support
For GBP/USD, a drop below trendline support from the September low found buyers yesterday, and while the price has continued to fall and establish another lower high so far today a bounce seems to be in the offing.
This more bullish view would target last week’s peak towards $1.315, while a reversal below $1.293 could help give the sellers further ammunition.
USD/JPY heads back to ¥104.00
Although it bounced overnight, the USD/JPY price has now started to move back towards ¥104.00, the crucial area of support that has held twice before since August.
Sellers should be on watch for any possible reversal out of this area that then brings the potential for a rebound towards the declining 50-day SMA (¥105.50). A break below ¥104.00 could suggest a new push to lower lows, providing further impetus to the ongoing downtrend.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.8 pips on EUR/USD
- Analyze market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on the most popular forex markets