EUR/USD and GBP/USD move up and USD/JPY hits new two-decade high
The euro and sterling are making headway against the dollar, while USD/JPY has touched a fresh 25-year high.
EUR/USD edges up
EUR/USD appears to be attempting to form a basing pattern, having tested new lows below $0.99 yesterday but without a definitive new leg lower.
Clearly the downtrend is firmly intact here, but having established a fresh low yesterday the price now seems to be in a mood to bounce in the short term.
The last rally from July until mid-August reached the 50-day simple moving average (SMA) before moving lower again, so this is an initial target if the price is able to move above $100.90, which marked the highs last week.
GBP/USD moves up off two-year low
With GBP/USD the price came within a whisker of the Covid-19 low yesterday, but has edged up again today after the relentless drop of last week.
As with EUR/USD, this looks like a counter-trend bounce could be developing, and in this case we would look towards the July low at $1.176 and then the $1.19 highs from late August as the initial upside target. Then it would move on to the 50-day SMA at $1.1958.
Even a bounce to the 50-day SMA or above would leave the downtrend intact, so the broader bearish view is still in place, and it would need a move back above $1.2250 to suggest that a change is at hand.
USD/JPY reaches fresh highs
An unstoppable uptrend is quite something to watch, and USD/JPY’s ascent certainly qualifies as such at present.
Continued progress to the upside would bring ¥146.75, the 1997 high, into view, and at the current rate it may not be long before this level is tested.
Upward momentum remains strong, as underlined by the high stochastic and moving average convergence/divergence (MACD) readings, with little sign as yet of any reversal beginning to develop.
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
