EUR/USD and GBP/USD recover as USD/JPY falters
Some pre-election weakness has hit the dollar, allowing the euro and sterling to recover some lost ground, while USD/JPY’s bounce from last week’s lows may have run its course.
EUR/USD rallies off support
After holding below the 100-day simple moving average (SMA) yesterday the EUR/USD pair is moving up again this morning, with a renewed push higher targeting $1.188, the high from the latter part of October.
It has managed to rally from around $1.162, the same area that held in late September, bolstering the bullish view for the time being. A reversal below $1.16 would negate this view.
GBP/USD reverses course
GBP/USD also moved below its 100-day SMA ($1.2883) yesterday, but buyers arrived to prevent a close below this indicator, and we have seen some further bullish momentum this morning that increases the chance of a renewed move higher in the uptrend from the September lows.
This would bring $1.315 into view. A move below $1.286, support over the past three weeks, is needed to hand the initiative to the sellers.
USD/JPY weakens after three-day gain
Here the price of USD/JPY rallied off the lows of last week, but already what limited bullish momentum there was is slipping away.
A rally towards ¥105.00 yesterday found sellers ready to push the price lower, with some follow-through this morning. With momentum still weak a reversal below ¥104.50 could mark another push lower that takes the price below ¥104.00, a level of support since the end of July.
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.