EUR/USD at risk of declines, while GBP/USD and USD/JPY rally
EUR/USD has dropped to a two-week low, while GBP/USD and USD/JPY have continued to enjoy strong gains.
EUR/USD at risk of heavy losses
The price action over the past two weeks has carried EUR/USD back to the lows of early November around $1.10. The price has yet to break below this zone of support, but if the overnight rally from yesterday’s lows runs out of steam then we could see this level tested.
Short-term trendline resistance comes into play around $1.1015, while a bearish crossover on hourly stochastics would also provide a sell signal. For the moment, the sequence of lower highs this week provides a bearish view.
GBP/USD rallies towards one-month high
The YouGov seat projection has provided a sharp boost for sterling, helping to reverse a growing bearish impression over the past week. GBP/USD has rallied through trendline resistance from last Thursday’s highs, and has pushed above the lower high from 25-26 November.
Further gains require a sustainable breakout above $1.2976, which has held back gains since mid-October.
USD/JPY returns to key resistance
USD/JPY continues to climb, and has been the beneficiary of fresh bullish momentum over the past week. Now it must break above ¥109.55 to clear resistance and open the way to ¥110.34 and long-term trendline resistance from the September 2018 highs.
With the US out of the picture we may see some further weakness, but this is likely to be a buying opportunity unless the price breaks back below ¥108.50.
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 with insights from Real Vision
Discover a world of cutting-edge financial media from Real Vision, with a year's free subscription when you open and fund an IG account.*
- Exclusive insights from top financial minds, including Mark Cuban, Kyle Bass and Stanley Druckenmiller
- Thousands of videos, covering a massive range of financial topics, with new content released daily
- Easy access to Real Vision in the IG web platform
*Minimum fund of $500 to qualify for Real Vision TV access; minimum fund of $5000 for Real Vision TV, Macro Insider and Think Tank.
Live prices on the most popular forex markets
See more forex live prices
Prices above are subject to our website terms and agreements. Prices are indicative only
