EUR/USD and GBP/USD mixed as USD/JPY moves into narrow range
Rallies in EUR/USD and GBP/USD have stalled for now, while USD/JPY has found itself stuck in a tight range as the buyers and sellers fight to establish the next direction.
EUR/USD steadies around $1.21
The EUR/USD price fell back from last week’s high, but only slightly, leaving the bullish move of the past few weeks firmly in place, but perhaps looking a touch overextended ahead of the European Central Bank (ECB) meeting this week.
Rising trendline support from the November low would come into play around $1.20, and then below this $1.1815 is also possible support.
GBP/USD rocked by Brexit news
Headlines regarding negotiations saw the GBP/USD pair move around quite a bit yesterday, with a dip towards $1.32 being met by buying.
While it finished well off the lows it has begun to seep lower in early trading, suggesting perhaps some more weakness in the short-term, possibly towards the rising 50-day simple moving average (SMA) at $1.3128. A recovery of $1.34 would begin to point to a new leg higher that could see the price challenge $1.35 again.
USD/JPY holds around ¥103.70
The downward move for USD/JPY has been stalled above ¥103.50 for two weeks now, with a range emerging between ¥103.70 and ¥104.50.
So far there is little sign of a new direction emerging, so we wait for a break below to re-establish the downtrend, or above to point towards a resumption of the bullish move seen earlier in November.
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