Jump to content

Risk appetite recovers, lifting EUR/USD, GBP/USD and USD/JPY


Recommended Posts

A calmer atmosphere has seen risk appetite boost the euro and sterling against the dollar, lifting USD/JPY.

 
 

EUR/USD holds at trendline support

After falling back last week the price has begun to recover with EUR/USD, finding support at the rising trendline from the lows of late January. The run of lower highs since the beginning of the month means that a rally above $1.135 would mark a change and a potential break to the upside. This would bring the February high at $1.149 into view.

A reversal back below $1.13 would see a break of trendline support and revive the bearish view.

EUR/USD chartSource: ProRealTime

GBP/USD looks to push higher

Tuesday’s bounce with GBP/USD has put the buyers back in charge, although they must now push the price on above $1.363, which has marked the limit of gains since the beginning of the month. If this cannot be broken then further sideways movement may result.

A move back below $1.355 would potentially mark the beginning of a deeper turn lower.

GBP/USD chartSource: ProRealTime

USD/JPY recovers 50-day MA

The bounce yesterday with USD/JPY put the price back above the 50-day simple moving average (SMA) at ¥114.86. A higher low may form, and provide a further bullish impulse that may bring ¥116.00 into view.

Today has seen the price open above trendline resistance from the February peak, bolstering a more bullish view. It would require a reversal back below ¥114.50, reversing Tuesday’s gains.

USD/JPY chartSource: ProRealTime

Chris Beauchamp | Chief Market Analyst, London
23 February 2022
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,001
    • Total Posts
      87,982
    • Total Members
      68,996
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Alexia1008
    Joined 26/09/22 15:14
  • Posts

    • Hi @stephenC Thanks for reaching out,  We only offer this stock on share dealing due to high broker margin.  All the best,  Anda
    • Friday’s fiscal plan unveiled by the UK government has scared off investors and as a result the pound is down heavily across the board. IGTV’s Jeremy Naylor explains that while sterling is off today’s lows, it has suffered breaks of support taking the pound down to levels not seen in decades against a basket of currencies.          
    • GBP/USD in 37-year lows, EUR/GBP 2-year highs and EUR/USD fresh 20-year lows GBP/USD slid to its 1985 low and EUR/GBP rallied to a 2-year high following the UK’s fiscal stimulus mini budget while EUR/USD slid to fresh 20-year lows amid Italian far right election outcome.    Axel Rudolph | Market Analyst, London | Publication date: Monday 26 September 2022  EUR/USD drops to new 20-year lows as US dollar scales fresh 2-decade high This year’s slide in EUR/USD has taken it to levels last seen in June 2002 amid the Federal Reserve's (Fed) aggressive monetary tightening policy with market participants expecting another 125-basis point (bp) rate hike over the next couple of meetings, following three consecutive monthly 75bp rate rises which drove the US dollar to two-decade highs. With Italy’s first far right party since Benito Mussolini’s National Fascist Party in the 1920’s on course to win Sunday’s election, the euro is further under pressure. EUR/USD slid by around 4% since last week to fresh 20-year lows, slightly below key support seen between the June 2000 and January 2001 highs and the September 2002 low at $0.9698 to $0.9593 by dropping close to the $0.955 mark. Below it beckons the September 2001 high at $0.9331. Minor resistance can be spotted at the June 2000 high at $0.9698 above which lurks more substantial resistance around the 6 September trough at $0.9865. See an FX opportunity?
×
×
  • Create New...