EUR/USD and GBP/USD move up while USD/JPY pauses after surge
Small bounces for EUR/USD and GBP/USD come after a string of losses, while USD/JPY’s ascent has halted for the moment.
EUR/USD tries to stabilise near 200-day SMA
A small bounce from near the 200-day simple moving average (SMA) at ($1.1819) comes after a string of losses for EUR/USD.
Still, the progression of lower daily highs over the past week and more is intact, and bulls would need to see a close back above $1.2 to be confident that the advantage has shifted back in their favour with the creation of a higher low and a recovery of recent losses. Sellers will want any rally to hold below $1.203 to indicate that previous short-term support has become resistance, opening the way to further downside.
GBP/USD edges up after losses
Some dollar weakness has provided respite for GBP/USD after a pullback from the late-February highs. The uptrend is still very much intact, with the wide gap between the price and the 50-day SMA ($1.3764) which prevailed two weeks ago now closed.
The uptrend seems set to resume, with a recovery of $1.39 providing evidence of this, while on the other hand sellers will want to drive the price below $1.37 to take out a previous key area of resistance (now support).
USD/JPY still climbing
USD/JPY has seen some of the most remarkable volatility, this time surging in a fashion not seen since the rebound of March 2020.
This bounce has left the moving averages far behind, but aside from some short-term weakness around ¥109 there seems no sign of any near-term weakness. The steepness of the ascent could prompt a dramatic pullback, but at present the surge shows no sign of reversing.
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