EUR/USD and USD/JPY stalled, while GBP/USD still on the up
Gains in EUR/USD and USD/JPY have stalled, but there seems little sign that the bounce in GBP/USD has run its course yet.
Rally in EUR/USD pauses
EUR/USD continues its rally, although it has stalled over the past two days.
We could see a pullback towards $1.107 and the 200-day simple moving average (SMA), which would leave the rally intact and also provide a strong buying opportunity. A move through $1.118 would breach the highs from Friday, and would bring the 200-day SMA into play at $1.1209. A move back below $1.106 would arguably indicate that a lower high has been created and that a fresh downward move is underway.
GBP/USD still on the up
There has been little stopping GBP/USD over the past few days and, so far, there seems no sign that the bounce has come to an end.
Dips towards the 50-hour SMA (currently $1.2939) have provided support, so a move below this would be viewed as negative in the short term. Further support is possible around $1.277 and $1.264.
USD/JPY stalled below ¥109
After rallying sharply over the past three weeks, USD/JPY has run into some resistance below ¥109.00.
Gains from the low at the beginning of Monday’s session have stalled at ¥108.70, and further declines would test support around ¥108.00. As has been the case since July, a close above ¥109.00 is needed to open the way to a fresh rally, with the price having been stuck below the 200-day SMA (¥109.06) since May.
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