EUR/USD and GBP/USD rally, while USD/JPY is held below resistance
The euro and sterling continue to rally against the dollar, while the greenback remains constrained by resistance against the yen.
EUR/USD returns to March peak
EUR/USD has rallied back to the area of resistance last seen at the end of March, providing an interesting moment for shorts.
A reversal back below $1.10 would needed to confirm that a bigger decline is at hand. Rising support from mid-March would come into play in the event of a deeper pullback, although this may not come into view around $1.085. Above $1.11, the price heads towards $1.14.
GBP/USD spike at risk of turning lower
GBP/USD has rallied towards the 100-day simple moving average (SMA) at $1.2570, but with the longer-term downtrend in place a possible reversal could bring out the bears once again.
Alternatively, a further rally through $1.26 then targets the 200-day SMA at $1.2664.
USD/JPY still testing resistance
While USD/JPY has rallied overnight, the area around ¥107.80 continues to act as resistance, as it has done since early May.
A move through ¥108.70 will bring a move towards ¥109.20, last seen in early April, with the potential for it to be a dramatic move given how strong resistance has been over the past month.
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
