EUR/USD under heavy selling pressure as GBP/USD and USD/JPY edge higher
It was a tough day for EUR/USD yesterday, which fell to its lowest level in 16 months, while GBP/USD and USD/JPY have made small gains.
EUR/USD slumps below $1.14
EUR/USD continues to plumb new depths for the year, lurching lower yesterday to a level below $1.14 for the first time since July 2020.
The next target to the downside is the $1.124 swing high from the very end of 2019. So far there is no sight of a more bullish short-term move, and even a rally towards $1.16 would still provide the potential for a lower high and a reinforcement of the downtrend.
GBP/USD bounce continues in cautious fashion
Things are looking a touch better here for GBP/USD bulls, although even here the pair is still edging up only from a lower low.
A rebound from here towards the upper bound of the current daily descending channel would see the pair head back towards $1.37. Sellers at present may look for a reversal of the past three sessions of gains, which in this case would see $1.3365 broken to the downside and a firmly bearish leg lower begin.
USD/JPY still targets recent highs
The dollar continues to strengthen overall with USD/JPY, and the pair is slowly recovering from the early November dip below ¥113.00.
A move back towards ¥114.50 is still contemplated, supported by rising stochastics and guardedly bullish price action. A move back to, and then below, ¥113.00 would be needed to negate this view.
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.
