EUR/USD holds support and USD/JPY hits resistance, while GBP/USD pushes higher
Forex markets are quiet ahead of ECB minutes and tomorrow’s key Jackson Hole speech, but some improvement in PMIs has helped EUR/USD to hold support.
EUR/USD holds above $1.107
For the moment the EUR/USD pair continues to find support around $1.107, as it did in early August.
A rally would require a move above $1.111, which has acted as resistance throughout the week. If this is accomplished then the $1.125 zone comes into play as a possible target to the upside. A move below $1.105 negates this more bullish thesis and signals that a move towards $1.085 is underway.
GBP/USD still on the up
GBP/USD continues to adhere to rising trendline support from the 12 August low, pushing higher after a retracement from yesterday’s peak.
This short-term rebound would likely encounter resistance around $1.22 in the short term. A move below $1.21 begins to negate this more positive outlook, and a close below the Tuesday low of $1.2063 would hand the initiative to the bears.
USD/JPY looks to test resistance
The USD/JPY pair continues to be stuck below ¥106.70, the area of resistance that has held for over a week.
But with higher lows in place over the past few days. A push through ¥106.80 would provide a more bullish view, leading the price on towards ¥107.50 and then on to ¥108.50. The short-term bullish view would remain in place unless the price moves back below ¥106.00, in which case the longer-term bearish view reasserts itself.
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
