EUR/USD and GBP/USD look to further upside, as USD/JPY bounce runs out of steam
Gains continue to dominate in EUR/USD and GBP/USD, but the breakout earlier in the week for USD/JPY appears to be fizzling out.
EUR/USD climbs to new high
EUR/USD has moved decisively higher over the past two sessions, clearing $1.20 and then $1.21 after weeks of indecision.
The path of least resistance clearly lies to the upside, but with the price now so extended to the upside bulls need to be careful. A drop back below $1.20 could spark a bigger pullback towards the 50-day simple moving average (SMA) of $1.1812.
GBP/USD recovers from Wednesday weakness
Dips for the GBP/USD pair do not last very long, as we saw yesterday with the drop below $1.33 which was swiftly recovered.
The November upward trend stays in place until we see a move back below $1.33, but as has been shown over the past week or more there is plenty of buying pressure as we approach this level. Bears will need plenty of strength to effect a real change in the current outlook for this pair.
USD/JPY continues breakout
USD/JPY’s rally through trendline resistance from earlier in the week continues, although there is little real conviction behind it.
Yesterday’s bounce towards ¥104.80 was hit by selling just as the last one was on November 24, putting further upside into question. A reversal below ¥104.00 would break trendline support from the November low and also put the price back below trendline resistance from the November peak at ¥105.50.
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