EUR/USD and GBP/USD feel heat from stronger US dollar, while USD/JPY holds around ¥109
GBP/USD is on the back foot this morning while USD/JPY ponders its next move after a huge rally.
EUR/USD mixed in early trading
The buyers seem to have handed back control to the sellers in this EUR/USD pair, as the gains of last week are given back and the attempt to recover $1.20 fizzles out.
The 200-day SMA at ($1.1837) is now in sight once more, and buyers will be hoping it can hold as it did a week ago. Sellers will be looking for a push below this that then brings $1.1612 into view over the course of time. A rally back above Friday’s high at $1.1986 is needed to put the pair back on an upward course.
GBP/USD reversal in progress
In cable too the bounce of last week is now a distant memory, and the 50-day simple moving average (SMA) ($1.3797) is likely to be tested as dollar strength pushes the GBP/USD pair lower.
This then brings the $1.37 area into view once again, while below this the $1.35 zone is the next area to watch for possible support. The buyers seem to have lost the upper hand here, and will need to get the price back above $1.40 to reverse this growing bearish short-term view.
USD/JPY holds firm around ¥109
The USD/JPY pair shrugged off last week’s temporary drop and has continued to hold above steep trendline support from the late February-low.
Further gains take it on towards ¥109.50, but it must be wondered how long this sharp ascent can continue. Nonetheless, the price is providing little indication of any reversal as yet, with the buyers still firmly in control. A move back below ¥108.50 is need to provide an indication of a bigger retracement.
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
