EUR/USD, GBP/USD recover from multi-month lows while USD/JPY tops out
Outlook on EUR/USD, GBP/USD and USD/JPY as the US dollar slips on month-end profit taking.
EUR/USD recovers from nine-month low
As the US dollar, yields and oil price retreat from their multi-month highs at the end of September, EUR/USD recovers from this week’s low at $1.0488 towards the mid-September low at $1.0632.
This week’s nine-month low was made marginally above major support which consists of the mid-November high, early and December low and January low at $1.0484 to $1.0444.
Initial resistance comes in at last Thursday’s $1.0617 low and more important resistance between the May low and mid-September low at $1.0632 to $1.0636.
GBP/USD bounces off six-month low
End of month profit taking in the US dollar amid dovish talk by Federal Reserve (Fed) members Goolsbee and Barkin and better-than-expected UK gross domestic product (GDP) on the headline year-on-year (YoY) print, as well as the business investment metric have helped GBP/USD bounce off its six-month low at $1.2111.
Better-than-expected UK revised business investment numbers also aid the cross head towards its September downtrend channel resistance line at $1.228. Above this level minor resistance can be spotted at the $1.2309 May low and significantly further up along the 200-day simple moving average (SMA) at $1.2437. While remaining below it, the medium-term bearish trend remains intact.
A fall through the September low at $1.2111 would push the minor psychological $1.20 mark to the fore.
USD/JPY comes off its 10-month high
USD/JPY's 10-month rise has taken it to this week’s ¥149.70 high before topping out as end-of-month profit taking has led to a softening in the US dollar from its lofty heights.
Better-than-expected Japan preliminary industrial production also contributed to the cross slipping through its July-to-September uptrend line at ¥148.72.
Below it potential support can be found around the ¥147.87 early-September high. Further down lies last Thursday’s low at ¥147.33. While this minor support area underpins, the July-to-September uptrend remains intact despite the cross short-term topping out.
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.
