EUR/USD falls back as GBP/USD moves higher, while USD/JPY holds steady
EUR/USD is heading back to trendline support, while the pound has made some gains against the dollar following UK CPI figures.
EUR/USD falters after gains
EUR/USD has returning to trendline support, holding above the 50-day simple moving averages (SMA) for now.
This week’s reversal, accompanied by a potential bearish moving average convergence/divergence (MACD) crossover, points towards a lower high that revives the downtrend of the past year.If the price breaks below $1.13 the bearish view will be strengthened once again, and the price could head back towards $1.1186. A bounce from the 50-day SMA would head back towards $1.14.
GBP/USD moves up after losses
After reversing for three days the GBP/USD price has edged up, but short-term decline remains in place.
A reversal back above $1.362 would mark a short-term break to the upside, targeting the previous lower highs at $1.366 and $1.368. Further declines would bring $1.358 into view, and potentially mark a continuation of the downtrend seen since the end of last week.
USD/JPY stalled after volatile Tuesday
The expected rebound has not yet materialised, with sellers hitting the USD/JPY price to stall any further progress. The price is stalled at present, but continues to hold above the 50-day SMA (¥114.34).
For now the outlook is neutral, with a move back above ¥115.00 likely to revive the bullish view. Meanwhile a more bearish view would develop with a drop below ¥114.00, although even then Friday’s low at ¥113.48 would still need to be broken to open the path to more 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.
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