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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

​​EUR/USD, EUR/GBP and GBP/USD remain bid ahead of FOMC minutes

​​Outlook on EUR/USD, EUR/GBP and GBP/USD as the US dollar remains under pressure ahead of Fed speeches and FOMC.

USD Source: Bloomberg

​​​EUR/USD has broken through resistance

EUR/USD's advance above the 5 February high at $1.0805 is short-term bullish. Above the 200-day simple moving average (SMA) at $1.0826 and Tuesday's $1.0839 high beckon the early February high and 55-day SMA at $1.0881-97.

​Potential slips are expected to find support around the 5 February high at $1.0805 and along the breached uptrend line at $1.0782.

EUR/USD chart Source: TradingView.com
EUR/USD chart Source: TradingView.com

​EUR/GBP's recovery off five-month low stalls

EUR/GBP's bullish reversal off its current £0.8499 February low briefly exceeded the 6 February high at £0.8573 by rising to £0.8578 on Tuesday before retracing lower. As long as this resistance zone caps, further sideways trading is likely to be seen.

​For the bulls to be in control a rise and daily chart close above £0.8578 needs to be seen in which case the 200-day SMA at £0.8587 would be back in sight.

​Support below Monday's £0.8538 low sits between the July-to-August lows at £0.8504 to £0.8493.

EUR/GBP chart Source: TradingView.com
EUR/GBP chart Source: TradingView.com

​GBP/USD surges back up again

​Not only did GBP/USD manage to hold above its October-to-February uptrend line and 200-day SMA at $1.2565 since last week but the cross then also rallied back to the 55-day SMA at $1.2667 on Tuesday. It acted as resistance, though.

​It and last week's high at $1.2691 need to be bettered for the $1.275 region to be back in sight. This scenario will remain in play while the early February low at $1.2519 underpins.

​While $1.2691 caps, however, the bearish medium-term trend will remain valid.

GBP/USD chart Source: TradingView.com
GBP/USD chart Source: TradingView.com

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.

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