EUR/USD and GBP/USD move higher as USD/JPY retreat goes on
Dollar weakness has given space for EUR/USD and GBP/USD to recover, while USD/JPY continues to retreat from recent highs.
EUR/USD bounces from support
EUR/USD bulls will be hoping that the pair can see its way to a broader recovery now that the price has managed to arrest its decline for the time being. The price has bounced from $1.1524, holding the October low.
A move towards $1.17 could now be contemplated, or at least a move back to the 50-day simple moving average (SMA), currently $1.167. Sellers will be hoping for a renewed drop that challenges $1.1524.
GBP/USD rebounds as BoE disappointment fades
Last week’s sharp decline with GBP/USD has been partly recovered, which will give some hope that a higher low has been created, compared to the September low, and that a new bounce can begin.
Gains will target $1.37 and then onwards towards $1.385. Sellers will view talk of a higher low as contentious at best, and that instead a move back towards $1.34 can test this support zone.
USD/JPY pullback continues
The retreat with USD/JPY from the October highs is still in play, with the price now heading towards the ¥112.00 swing high from late September, and then to the 50-day SMA at ¥111.92.
But the uptrend is firmly intact and we will be on watch for a higher low to be created that will reinforce the bullish view.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only