EUR/USD and EUR/JPY rise while USD/CAD continues its swift descent
Outlook on EUR/USD, EUR/JPY and USD/CAD as the euro appreciates, the yen depreciates and USD/CAD trades at levels last seen in September 2022.
EUR/USD is seen heading back up again
EUR/USD's recovery from last week’s $1.0845 low is gunning for the breached June uptrend line at $1.0963 which represents a possible upside target, together with the $1.097 mid-June high as the greenback depreciates.
Further up beckons last week’s high at $1.1012.
Support below Monday’s Harami daily candlestick high at $1.092 comes in along the 55-day simple moving average (SMA) at $1.0887 as well as at last week’s low at $1.0845.
EUR/JPY rallies to near 15-year high
EUR/JPY continues its swift advance on the back of a hawkish European Central Bank (ECB) and dovish Bank of Japan (BoJ) which sticks to its ultra-loose monetary policy, with the cross now trading at levels last seen in September 2008.
The currency pair is fast approaching its February 2007 high at ¥159.65 but the general weakness in the yen continues to boost expectations of policy action from the BoJ to defend the currency, providing a potential point of volatility.
Support below the accelerated uptrend line at ¥156.26 can be spotted at last Friday’s ¥155.06 low, a fall through which could lead to the next lower ¥154.05 20 June low being reached. Further down sits the ¥151.61 early May high.
USD/CAD continues to slide ahead of CPI release
USD/CAD's decline has taken it to levels last seen in September 2022 ahead of today’s Canadian consumer price index (CPI) which is expected to come in at 0.4% month-on-month (MoM) and 5.4% year-on-year (YoY) in May.
The next potential support zone is made up of the June and early July 2022 highs at C$1.3084 to C$1.3079.
Minor resistance above last week’s C$1.3139 low lies at the mid-June low at C$1.3178.
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
