EUR/USD, GBP/USD and USD/JPY amid depreciating US dollar
Outlook on EUR/USD, GBP/USD and USD/JPY as the greenback slips to two-month lows amid falling US yields.
EUR/USD flirts with late August peak
EUR/USD’s advance is approaching its $1.0945 late August high as the greenback slips to a 2 ½-month low amid falling US yields. If overcome, the late June high at $1.1012 will be next in line, together with the August $1.1065 peak.
Minor support can be seen around last Tuesday’s $1.0887 high ahead of the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0808.
GBP/USD seems to have shrugged off weak UK retail sales
GBP/USD is seen trading back above the 200-day SMA at $1.2446 below which it slid last week amid weaker-than-expected inflation and retail sales.
A rise above last week’s high at $1.2506 would engage the late August low at $1.2548 ahead of the mid-August low at $1.2617. These levels will remain in sight while Friday’s low at $1.2375 underpins.
Below it the mid-October high can be made out at $1.2337 and may also offer interim support, were it to be revisited which looks to be unlikely at the moment. Further down minor support can be found at the $1.2288 late October high and along the 55-day SMA at $1.2279. While the next lower 10 November low at $1.2188 isn’t giving way, the October-to-November uptrend will remain intact.
USD/JPY tops out near the October 2022 peak
Last week USD/JPY topped out around its October 2022 peak at ¥151.95 and then slid through its July-to-August tentative uptrend line at ¥150.52 as the greenback dropped amid falling US yields.
On Monday morning the cross also slid through the 55-day SMA at ¥149.26 to a six-week low ahead of this week’s Japan consumer price inflation data out on Friday. The October trough at ¥147.29 is back in the picture provided no bullish reversal takes the currency pair back above Thursday’s high at ¥151.43.
Minor resistance above the 55-SMA at ¥149.26 is seen around Wednesday’s ¥150.05 low ahead of the breached tentative uptrend line, now because of inverse polarity a resistance line, at ¥150.50.
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
