Pullbacks in EUR/USD, GBP/USD and USD/JPY halted, but bulls struggle to maintain momentum
While the downward moves for the euro and sterling against the dollar, and the dollar against the yen, have paused for now, further gains have yet to appear.
EUR/USD struggles to push higher
EUR/USD staged a recovery last week, though it has been unable to hold gains above $1.086.
For the moment, the buyers are in control, though they will need a close above $1.086 to suggest that more upside is likely. In this instance the price will then move on towards $1.092 and then the $1.095 highs from July.
A reversal back below $1.0825 would negate this view and point the way to further losses.
GBP/USD pullback halted
After dropping for most of the past two weeks, GBP/USD price managed to stabilise on Friday.
A close above $1.29 would bolster the price one bullish view and put the course to target $1.30 once more, reviving the uptrend.
A close back below last week’s lows brings the 50-day simple moving average (SMA) back into view, though the current uptrend remains in place.
USD/JPY rebound stalls
While last Wednesday saw USD/JPY mount a strong bounce off ¥152.00, the price has seen no continuation of this move, stuck below ¥154.00.
This failure to maintain the bounce tilts the view back towards bearishness, and could see another test of the ¥152.00 level and the 200-day SMA.
A close above ¥154.00 is needed to provide a short-term bullish view, and suggest that the price is beginning to move higher off a higher low, maintaining the uptrend for the year so far.
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.
