EUR/USD tests trendline support and GBP/USD drifts down while USD/JPY bounce stalls
The dollar has gained against the euro and sterling, while against the yen the greenback’s bounce has stalled.
EUR/USD tests trendline support
EUR/USD dropped sharply on Thursday, giving back gains made earlier in the week, and having registered a lower high a more bearish view may prevail.
Trendline support from the early February low now comes into play. If this is broken then the bearish view will receive further reinforcement. If the price holds trendline support then a renewed bounce above $1.095 might revive the bullish view.
GBP/USD heads lower
The rally of early March has given way to losses over the past week, though the GBP/USD's price remains above the 50-day simple moving average (SMA) and above trendline support from the February low.
Continued declines target the 50-day SMA and then trendline support, it would require a close below $1.26 to suggest that the pullback has turned into something more bearish.
USD/JPY bounce stalls
USD/JPY's recovery continues here, as the price bounces off the 200-day SMA after its pullback from the February highs.
A close above the 50-day SMA helps to support the bullish view, and opens the way to the February highs around ¥150.80, and then on to the ¥151.94 high from November.
This information has been prepared by IG, a trading name of IG Markets Limited. 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
