AUD/USD and EUR/JPY move higher, but EUR/GBP falls back again
Both AUD/USD and EUR/JPY are recovering after recent heavy losses, while EUR/GBP’s attempt to rally has been knocked back.
AUD/USD losses halted
AUD/USD has formed a low for the time being, after slumping to a three-month trough last week.
Steady gains over the last two days provide the view that a low is being formed, and that a rebound towards the 200-day simple moving average (SMA) is now underway, also targeting the $0.66 zone once more.
A reversal back below $0.6515 would put the price on course to erase more of the gains made since late April
EUR/GBP knocked back from 50-day MA
After rallying over the past two weeks EUR/USD was firmly thrown back from the 50-day SMA.
This leaves it back below trendline resistance from the May highs, and might now see a new test of the July lows. Much will depend on the Bank of England meeting this week.
Trendline resistance from the May highs and then the 50-day SMA remain the key targets in any renewed short-term recovery.
EUR/JPY forms a higher low
The uptrend with EUR/JPY took a knock over the past three weeks, but having been overextended to the upside in early July, it may now push higher once again.
The longer-term trend is still in place, with the drop below ¥166.00 having found buyers. A push to the 100-day SMA on Friday was knocked back, but overall the price looks like it is forming a higher low.
The price needs to clear the ¥167.70 area in order to make further gains, while a renewed short-term bearish view needs a close back below ¥165.00.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
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
Prices above are subject to our website terms and agreements. Prices are indicative only
