EUR/USD and GBP/USD rally while USD/JPY edges lower

Sterling is bouncing in the short term, while the euro is fighting to hold $1.12.

Sterling Source: Bloomberg

EUR/USD bounces from $1.12

EUR/USD continues to rally from $1.12, as this level is still holding as support. Gains have stalled at $1.128, so a move above this level is needed to open the way to $1.132 and the 200-day simple moving average (SMA).

Trendline resistance from the June high would be found at $1.125, providing another hurdle to a break higher. Bears need to push the price below $1.12 to start a deeper pullback, targeting $1.112.

EUR/USD chart Source: ProRealTime

EUR/USD chart Source: ProRealTime

GBP/USD recovers from lower low

GBP/USD has rallied off its lows over the past 24 hours, but the overall downtrend is still firmly in place.

A rebound towards $1.26 would challenge the peak from earlier in the week, and then provide another possible selling opportunity. This would also take the price back to trendline resistance from the May peak. The bearish view likely remains in place until the price moves back above $1.262.

GBP/USD chart Source: ProRealTime

GBP/USD chart Source: ProRealTime

USD/JPY bounces from support

USD/JPY’s dips to ¥107.60 continue to find support, as we have seen so far today.

The price is also in a possible bullish wedge, with a slowing pace of declines seen over the past week. A rally to ¥108.10 would hit trendline resistance from the 11 July high. Below ¥107.50, the price heads towards ¥106.80.

USD/JPY chart Source: ProRealTime

USD/JPY chart Source: ProRealTime


This information has been prepared by IG, a trading name of IG Markets 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
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.