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EUR/USD in retreat as GBP/USD and USD/JPY continue to move higher

A quieter morning has seen EUR/USD continue its recent weakness, while the rally in USD/JPY has slowed from earlier in the week.

Transcript

EUR/USD retreats from week’s high

The sellers appear to have reasserted control, pushing EUR/USD back below $1.18 and targeting the $1.16 lower bound of the current range.

Bulls will need to take back control and drive the price back above $1.19 to restore a more bullish view, while a longer-term negative outlook requires a close below $1.16.

GBP/USD falters after new higher high

GBP/USD succeeded in reaching $1.33 yesterday, creating a new higher high.

While the price has now dropped back it remains firmly in an uptrend, with trendline support coming in to play around $1.30. Alternatively, a move back above $1.325 helps suggest that a renewed move higher is in play.

USD/JPY rally eases off above ¥105

Signs of a continued rally have diminished for USD/JPY, as the price moves back above the 50-day simple moving average (SMA) of ¥105.23 but fails to make much further headway.

A reversal back below ¥105.00 would suggest a new move lower, similar to those of recent months. Buyers need to clear ¥106.00 to continue their work of changing the longer-term trend.

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.

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