EUR/USD holds its ground while GBP/USD clings to highs

The euro is managing to hold its ground against the dollar, while the pound remains close to its recent highs.

EUR/USD looks to bounce after holding support

Friday’s furious sell-off found support around $1.104, and EUR/USD has gained ground since then.

The price held above the 200-hour simple moving average (SMA) of $1.1057, and if it can move back above $1.108 then a rally to $1.111 could be in the offing. A move above here could reignite the overall bounce in the pair, especially since it held the double bottom in November around $1.10.

GBP/USD holds close to $1.32

GBP/USD shows little sign of turning lower, although it has slowed its ascent in recent sessions. However, it clings on to the seven-month highs, with $1.32 and then $1.332 the next levels to watch.

Sideways price action over the past few days provides little clear direction, and ahead of the election we may see a deeper retracement towards $1.303, which might provide a more attractive buying opportunity. A breakout above $1.318 would point towards fresh bullish momentum.

USD/JPY decline slows above 50-day SMA

USD/JPY has shown little in the way of bullish momentum over the past week or more, but declines have been halted at the 50-day SMA, with a clear slowdown in bearish momentum.

If the price can reverse back above ¥109.00 then a higher low may be in place, allowing the pair to target ¥109.50 and higher in due course. A close below ¥108.50 would be a bearish development and suggest that the rebound from the August lows might finally be running out of steam.

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