EUR/USD quiet and GBP/USD slumping while USD/JPY rallies
Losses are accelerating for GBP/USD, while EUR/USD is quiet and USD/JPY continues its gains for the month of July.
EUR/USD still under pressure
EUR/USD has continued to decline, although it is yet to move below $1.12. Any short-term rebound would need to close back above $1.13 to suggest a bigger move higher is underway, since this is the area that was strong resistance before Friday’s sharp drop.
Below $1.12, and then below $1.119, the mid-June low, the price will push lower, to the May low at $1.1118. A recovery above the 50-day simple moving average (SMA) of $1.124 would provide some near-term bullish momentum.
GBP/USD back to December 2018 low
A new low in the downtrend from the mid-June high sees GBP/USD return to the $1.25 area, the December 2018 support.
Selling intraday rallies has been the approach here since the middle of June, and a rebound towards $1.252 may well provide another such opportunity. Further declines head towards $1.2366 and then on to $1.20.
USD/JPY continues July rally
The rally since the end of last week has created a new higher high for USD/JPY, as it pushes up from the late-June low.
The pair has staged an impressive turnaround, and now it needs to hold above ¥108.80 to clear the mid-June resistance area. Above this, ¥109.55 becomes a target. Pullbacks towards ¥108.00 and rising trendline support from the June low may provide a fresh buying opportunity.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
