EUR/USD and GBP/USD in retreat as USD/JPY rises
The dollar weakened overnight, but downtrends in EUR/USD and GBP/USD are reviving as USD/JPY looks to move higher.
EUR/USD bounce runs out of room
EUR/USD has rebounded from the lows of yesterday, but the bounce may be about to run out of steam already, as the price hits the $1.08 level and encounters the 50-hour simple moving average (SMA) at $1.082.
Fresh declines target yesterday’s low at $1.065, while a continued push above $1.085 heads towards $1.095 and the Wednesday to Thursday overnight highs.
GBP/USD clears Thursday’s high for now
GBP/USD has also bounced from the lows and managed to push above Thursday’s peak of $1.179.
Further gains head towards $1.2314, while a resumption of the downward trend brings the week’s low at $1.143 into view.
USD/JPY drops back but further gains expected
The dollar bounce has eased off a touch, but USD/JPY remains firmly in its uptrend, having recovered almost all the losses of late February and early March.
The next big target is ¥112.00, resistance from February 2019 and 2020. Above this, is ¥113.64. A push below ¥109.00 suggests a drop towards ¥108.60, although even this may not spell the end of the bounce.
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.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
