EUR/USD decline continues, while USD/JPY keeps rallying and GBP/USD holds steady
The euro is still declining against the dollar, and the greenback has continued to make gains against the yen.
EUR/USD continues to push lower
The sellers remain in control for EUR/USD, with a small bounce early yesterday being swiftly reversed.
For the time being further declines seem likely, with no reversal in the progression of intraday lower highs and lower lows. Further declines target $1.15 and then down to $1.1425. A rally above $1.18 is needed to provide a more near-term bullish view.
GBP/USD fighting to hold above $1.27 level
For a second day, GBP/USD is fighting to hold above $1.27, having dipped below this level in early trading.
If it can find a floor here then a rebound towards $1.30 may develop, with a rally above $1.288 marking a breakout from trendline resistance. Further declines below $1.2674 target $1.25.
USD/JPY keeps rallying
USD/JPY strength has seen this pair continue to move higher for the previous three sessions.
This countertrend rally shows no sign of stopping yet, with gains targeting the 50-day simple moving average (SMA) at ¥105.90. A bearish reversal in the direction of the underlying trend lower would point towards a renewed move to the downside.
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.