EUR/USD and GBP/USD edge lower as USD/JPY moves cautiously higher
FX markets have seen some further dollar strength, although the risk-off move is much more muted when compared to equities.
EUR/USD resumes Monday’s downward move
The selling has continued for EUR/USD, although the losses have been contained when compared to equities.
The pair remains within something of a rising trend channel, with the drop back from last week’s highs coming after a test of the upper bound of the channel. Thus a decline towards the lower bound towards $1.174 might provide buyers with a chance to resume the upward move. A break below the lower bound could bring the September low at $1.1615 into view.
GBP/USD pulls back towards rising trendline
GBP/USD continues its steady push higher from the September lows, and the drop of the past few days could be viewed as a natural retracement after the spike last week.
Trendline support from the September low comes into play around $1.30, and if this holds we could see the creation of a higher low and a new bounce to the upside. Alternatively, if momentum indicators such as moving average convergence/divergence (MACD) roll over in coming sessions and the trendline is lost then a more bearish short-term view comes into play.
USD/JPY edges up for another day
USD/JPY's small recovery from last week’s lows has been seen here, with the price moving back above ¥104.50.
For the third time since late July a drop towards this level has found support, but it has been notable that the rallies following these lows have been weakening over time, forming lower highs since mid-August. It is also worth noting that the bounce above ¥105.00 yesterday was sold, suggesting that the sellers remain in control overall.
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
