EUR/USD, GBP/USD surge while USD/JPY establishes a new lower low
Dollar weakness is driving EUR/USD and GBP/USD higher, while USD/JPY has carved out a new lower low in its current pullback.
EUR/USD on the up thanks to Fed
A dovish Federal Reserve (Fed) trumps a dovish European Central Bank (ECB) it seems. The Fed’s shift last week has seen EUR/USD hit a three-month high this morning, raising the possibility that a bottoming process continues to be seen in EUR/USD.
The price held $1.112, and now it has cleared the 200-day simple moving average (SMA) we may see further bullish momentum emerge. The next upside targets are $1.145 and then $1.1554.
GBP/USD returns to key resistance
The bounce here for GBP/USD has carried the price back to the $1.275 zone that stifled progress over the past four weeks.
Above $1.278 the price heads towards $1.287, and then $1.304. A drop at the end of last week ran into support around $1.265, so a renewed bearish view may develop if we move below this level.
USD/JPY pauses after new lower low
The current drop from the April highs established a new lower low at the end of last week for USD/JPY, as the crawl higher in the first half of June gave way to a swift drop.
The bearish view remains firmly in place unless the price moves back above ¥108.80. The next stop to the downside is ¥106.80, the low from January 3.
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
See more forex live prices
Prices above are subject to our website terms and agreements. Prices are indicative only