EUR/USD hits trendline resistance, while USD/JPY edges up and USD/CAD holds steady
The euro has seen its rebound against the dollar stall, while the US currency has made some gains against the yen and the Loonie.
EUR/USD tests trendline resistance
The EUR/USD has continued to rally, moving back to $1.06 on Tuesday.
However, this brings the pair towards trendline resistance from the July highs. The last time this trendline was tested as back in August, and resulted in a fresh drop. A failure to close above the trendline maintains the bearish view and could see a lower high created.
In the short term, a continued rally could target $1.07 and then $1.0735.
.png/jcr:content/renditions/original-size.webp)
USD/JPY struggles to move higher
Some bullish momentum has faded here with USD/JPY after the surge to ¥150.00 last week.
However, the broader uptrend is still intact, with the price yet to test last week’s lows or the still-rising 50-day simple moving average (SMA). A close above ¥149.50 could signal that another attempt to close above ¥150.00 could be in progress, though that might risk intervention by Japanese authorities.
Even a deeper retracement towards ¥145.00 would still leave the uptrend broadly in place.
.png/jcr:content/renditions/original-size.webp)
USD/CAD drops back from higher high
The USD/CAD rally here from the summer lows continues, though a weaker dollar has seen a sharp pullback from last week’s higher highs.
A drop towards the 50-day SMA or uptrend support from the July lows looks likely, and could see fresh buying pressure emerge. Should a higher low be created, then a new leg higher towards C$1.37 and higher could begin.
A close below trendline support would dent the bullish thesis, though mid-September saw buyers emerge around C$1.34/C$1.345. A more bearish view would need a close below this mid-September zone of support.
.png/jcr:content/renditions/original-size.webp)
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.
