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)
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
