EUR/USD slips, USD/JPY rises on appreciating US dollar but AUD/USD remains bid
Outlook on EUR/USD, USD/JPY and AUD/USD as a new year begins.
EUR/USD comes further off its five-month high
Last week EUR/USD managed to rise to $1.1139, close to its 27 July high at $1.1149, before correcting lower amid an appreciating US dollar for a third straight session.
The fall through the accelerated December uptrend line at $1.1096 led to the $1.1017 to $1.1009 November peak and mid-December high being revisited on Tuesday morning. Were this support zone to give way, the 19 December high at $1.0988 could be revisited. Above Tuesday’s intraday high at $1.1050 sits Friday’s $1.1084 high.
USD/JPY still hovers above five-month December low
USD/JPY is showing triple positive divergence on the daily Relative Strength Index (RSI) which accompanied last week’s low at ¥140.26 and points to a probable short-term bullish reversal in the currency pair.
A rise above Friday’s ¥141.91 high would put the 200-day simple moving average (SMA) and the November-to-January downtrend line at ¥142.97 to ¥143.64 on the cards. Minor support below Tuesday’s ¥140.81 intraday low sits at the ¥140.26 December trough.
AUD/USD targets its five-month December high
AUD/USD’s minor correction from last week’s five-month December peak at $0.6871 to Friday’s $0.6782 low has been followed by an attempt to revisit last week’s peak. It remains in sight provided that Friday’s low at $0.6782 underpins with the June and July highs at $0.6894 to $0.6899 representing further possible upside targets.
Below support at $0.6782, the 19 December high can be spotted at $0.6774 and much further down the $0.6688 early December peak.
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
