Small gains for EUR/USD and GBP/USD: technical analysis
Powell’s speech yesterday did hit the dollar, but the greenback is firming up today, resulting in only limited upside for the likes of the euro and sterling.
EUR/USD bounce stalls
The EUR/USD pair has bounced from $1.112 over the past week, but rallies since late April have run out of steam around $1.126, and so far gains over the past three sessions have failed to hold above this level.
Further upside targets $1.13 and then on to $1.133, while a move back below $1.122 would raise the prospect of a return to $1.112.
Small gains for GBP/USD
GBP/USD has clawed its way higher over the past few days, with higher lows in place since the end of May.
Gains in late May staled at $1.275, so this is the first area of resistance to watch for, followed on by the spike higher on 21 May to $1.2815. The short-term bullish view persists unless we see a move back below $1.264.
Bottoming action in USD/JPY
Price action here over the past few days suggests that a short-term bottom may have been formed for USD/JPY, but it is still a lower low as the pair continues its drop from the late April highs.
The price has stabilised around ¥108.00, so if this continues to hold then some upside may result, but ¥108.40 has provided resistance so far this week. Trendline resistance from the late April high would see the price run into a possible area of resistance around ¥109.50. A close below ¥107.80 would open the way to more downside.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
