EUR/USD and GBP/USD come off their five-month highs
Outlook on EUR/USD and GBP/USD as traders square their books ahead of year-end.
EUR/USD comes off five-month high
EUR/USD managed to rise to $1.1139, close to its 27 July high at $1.1149, before reversing lower amid an appreciating US dollar on short-covering into year-end.
The fall through the accelerated December uptrend line at $1.1070 puts the November peak at $1.1017 and the mid-December high at $1.1009 potentially back on the cards. This support area is likely to hold into year-end, though.
Above Friday’s intraday high at $1.1084 sits Wednesday’s $1.1122 high ahead of Thursday’s $1.1139 five-month high.
GBP/USD loses upside momentum into year-end
GBP/USD briefly made a new five-month high at $1.2828 on Thursday before giving back some of its gains as traders bought back their short US dollar positions.
Since negative divergence accompanied the daily Relative Strength Index (RSI), a possible top may be formed in the first week of 2024 which could take the currency pair through its November-to-December uptrend line at $1.2650. First, though, a fall through Thursday’s low at $1.2713 would need to occur.
Resistance remains to be seen at last week’s high at $1.2762 above which sits the more significant $1.2794 to $1.2828 resistance area which consists of the 10 August high at $1.2819 and the recent December peaks.
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.
