EUR/USD, GBP/USD and USD/JPY all turn lower
Risk aversion has hit FX markets, with a flight to safety taking place, resulting in swift reversals in a number of currency pairs.
EUR/USD break higher suffers sharp reverse
A revival in the US dollar resulted in EUR/USD’s bounce being reversed yesterday, and with the price back below the 50-day simple moving average (SMA) of $1.2154 and daily stochastics rolling over the bearish view has been given a new lease of life, at least in the short term.
In the first instance we have rising trendline support from the February lows that may provide support, and then below this the 100-day SMA at $1.202. A move back above $1.22 negates this bearish view.
GBP/USD drops for a second day
The selling in other markets has hit GBP/USD, wiping out most of the move of the past week that carried the price to $1.42.
Further declines now seem likely, towards the rising 50-day SMA at $1.37, bringing the price back to this key zone that provided some volatility on the way up.
USD/JPY reverses from higher high
The USD/JPY price has pulled back from its latest higher high, leaving the uptrend firmly in place.
Further declines would target ¥105.50, the 200-day SMA, and then down to ¥105.00 and the low from earlier in the week. A bounce back above ¥106.40, around yesterday’s highs, would put the buyers firmly back in charge, but for now we will have to watch to see if there is any recovery from the early weakness, or whether more losses are on the way.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.