EUR/USD falters, while GBP/USD rises and USD/JPY downtrend revives
FX markets have seen divergences in performance, with EUR/USD weaker ahead of the ECB, but GBP/USD still rising. Meanwhile, USD/JPY’s downtrend is back in action.
EUR/USD struggles to move higher
The bounce from the 50-day simple moving average (SMA) of $1.2091 has failed to make much headway, and the price of EUR/USD has fallen back from yesterday’s highs.
A full reversal has yet to take place, but a drop below $1.2054, the low from Monday, would certainly mark a more bearish development. One positive view would argue that the price has broken trendline resistance and having tested that from above yesterday is now poised to move higher.
GBP/USD testing highs around $1.37
The GBP/USD remains strong, pushing back to $1.37 and maintaining the uptrend of the past nine months.
Gains above $1.37 have proven hard to sustain since the end of December, so a breakout above this level will provide fresh bullish momentum. The price continues to adhere to rising trendline support from the November low, with no sign of any bearish momentum at present.
USD/JPY resumes downward move
The price of USD/JPY has moved back below the 50-day SMA, and with daily stochastics having rolled over as well it looks like a move back towards the lows of the month could now be in the offing.
Buyers have failed to hold the price above ¥104, and as a result further declines seem to lie ahead.
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
