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EUR/USD and GBP/USD fall while USD/JPY tries to continue rally

More losses look likely for EUR/USD and GBP/USD, while USD/JPY tries to keep moving higher.

EUR/USD rolls over and heads lower

The rally yesterday for EUR/USD to $1.122 was followed up by a steep drop, and then the subsequent recovery to $1.118 has turned lower.

Further declines target $1.109 and $1.1055, the low from Friday. This latter level is the higher low after the February surge, so if this is lost then a deeper retracement seems likely. A more bullish view requires a move above $1.119 and then $1.125.

GBP/USD shows no sign of rallying

The downward move here for GBP/USD has been relentless, with no real rebound over the past few days.

Once again we may be about to see the hourly moving average convergence divergence (MACD) roll over from an already low reading, while a possible bounce towards $1.2366 would merely see fresh selling pressure develop. If $1.22 is lost then the August/September 2019 lows around $1.20 come into play.

USD/JPY looks to continue rebound

The rally from last week’s lows continues for USD/JPY, as the price establishes a higher low at ¥105.20 and builds a rising trend.

Further gains target ¥108.30, but if momentum falters below this and then falls below ¥105.50 then more selling may develop. This may target ¥103.00 and then ¥101.70.

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.

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