EUR/USD under pressure while GBP/USD edges higher and USD/JPY stalls after recent gains
The euro has recovered against the dollar, though it remains under pressure. Sterling is also moving higher versus the greenback, while the dollar is holding firm against the yen.
EUR/USD falls below 200-day SMA
EUR/USD rebounded strongly on Friday, though it failed to move back above the 200-day simple moving average (SMA).
Since late September there has been a strong move to the downside, with only a brief rally earlier in October. However, this failed to move back above broken trendline support, and led to a fresh move below the 200-day SMA.
The move has wiped out most of the gains made since early August. A close back above the 200-day SMA might indicate a low has formed for the time being. August’s low at $1.0780 might offer support, while below this comes the June low at $1.0670.
.png/jcr:content/renditions/original-size.webp)
GBP/USD forms higher low
GBP/USD uptrend still looks in better shape, with positive divergence on daily stochastics providing hope of a sustained bounce.
While the price dropped below the early September low of $1.30 last week, it has since recovered. For the moment the selling appears to have been halted; the short-term bullish view remains intact unless we see a reversal back below $1.2970.
.png/jcr:content/renditions/original-size.webp)
USD/JPY stalls below ¥150.00
Having touched ¥150.00 last week, USD/JPY price now looks at risk of some short-term weakness.
Bullish momentum has faded over the past week, as noted by declining daily stochastics, though at present the sellers have been unable to gain much traction.
For the moment the price is holding above the August peak at ¥149.40; a close below this might trigger some more selling. Meanwhile bulls will be looking for a close back above the ¥150.00 level that could lead to a challenge of the 200-day SMA.
.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.
