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EUR/USD and GBP/USD rally, while USD/JPY is held below resistance

The euro and sterling continue to rally against the dollar, while the greenback remains constrained by resistance against the yen.

EUR/USD returns to March peak

EUR/USD has rallied back to the area of resistance last seen at the end of March, providing an interesting moment for shorts.

A reversal back below $1.10 would needed to confirm that a bigger decline is at hand. Rising support from mid-March would come into play in the event of a deeper pullback, although this may not come into view around $1.085. Above $1.11, the price heads towards $1.14.

GBP/USD spike at risk of turning lower

GBP/USD has rallied towards the 100-day simple moving average (SMA) at $1.2570, but with the longer-term downtrend in place a possible reversal could bring out the bears once again.

Alternatively, a further rally through $1.26 then targets the 200-day SMA at $1.2664.

USD/JPY still testing resistance

While USD/JPY has rallied overnight, the area around ¥107.80 continues to act as resistance, as it has done since early May.

A move through ¥108.70 will bring a move towards ¥109.20, last seen in early April, with the potential for it to be a dramatic move given how strong resistance has been over the past month.

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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