EUR/GBP riding high while AUD/USD and EUR/JPY rebounds continue
The euro has surged versus sterling and the yen, and the Aussie has made gains against the US dollar.
EUR/GBP at two-month high
EUR/GBP has shot higher following the UK rate cut last week, recouping all the losses since May.
Having made such strong gains so quickly, some consolidation may result, but with the price now back at £0.86 and above the 200-day simple moving average (SMA) the bullish view has reasserted itself.
It would need a reversal back below £0.855 and then £0.85 to suggest that the sellers have reasserted control.
AUD/USD surges on rebounding risk appetite
The Reserve Bank of Australia's (RBA’s) decision to leave rates unchanged has not halted the Australian dollar’s rebound. AUD/USD has recovered above $0.65 and shows no sign of stopping.
A low has formed around $0.648, and now the next target is the 200-day SMA, currently $0.6597. Further gains will see the price push into the range of May and June, between $0.66 and $0.67. A reversal below $0.648 is needed to reassert a bearish view.
EUR/JPY rallies off its low
After Tuesday’s losses EUR/JPY has rebounded on yen weakness, and a low may have formed for the time being.
Given the size of the pullback over the past month there is ample opportunity for a lower high, though a recovery above ¥162.00 and then above the 200-day SMA will help the bulls to rest easier. However, a failure to close above the 200-SMA could signal that a lower high has formed.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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
