EUR/USD and GBP/USD cling to gains while USD/JPY remains near ¥149.00
For now EUR/USD and GBP/USD are holding up against the dollar, while the yen is being given support by Japan’s intervention in FX markets.
EUR/USD nudges the 50-day SMA
The general recovery in risk assets has lifted EUR/USD from its September low, but now the pair has returned to the 50-day simple moving average (SMA), which has been such a barrier over the past few months.
With the downtrend still firmly in place sellers will be on the lookout for a fresh turn lower, perhaps marked by a turn lower in stochastics and then followed up by a bearish MACD crossover. This would then bring the September lows around $0.954 into view.
GBP/USD holds firm
Sterling continues to cling on to the $1.13 level, having fended off a turn lower at the end of last week. For GBP/USD this might provide scope for a push back to the 50-day SMA ($1.1399), while the $1.15 highs from early October loom beyond this.
As with EUR/USD, the overall downtrend is still in place, and so any turn lower would be viewed as a lower high, targeting $1.10 and lower.
USD/JPY holds close to ¥149.00
Japan’s intervention in FX markets continues to prevent further upside here for the time being for USD/JPY, although the price has bounced back from the lows seen on Monday.
The modest retracement from last week’s highs is another indication of the strength of the move higher. A continued drift lower might brin the 50-day SMA into view.
Overall, however, the uptrend is still ongoing, although it has paused for the time being.
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.
