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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​​​Safe-haven dollar buying pushes down EUR/USD and GBP/USD, while USD/JPY holds below Y150

​​EUR/USD and GBP/USD reversed their Monday gains yesterday, and are struggling to move higher this morning. USD/JPY is still wary of moving above Y150. ​

Dollar Source: Bloomberg

EUR/USD suffers a reversal

​The ongoing recovery reached the 50-day simple moving average (SMA) yesterday but EUR/USD suffered a sharp reverse on Tuesday.

​​A close back below $1.052 would hand the initiative to the sellers once again and signal that a new leg lower could be in the works. This might then see the price head towards $1.045, or even towards the $1.35 level.

​A close back above $1.07 would signal that the bulls have wrested control again, though the medium-term bearish view remains in place.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD under pressure again

​The price reversed from trendline resistance on Tuesday, putting GBP/USD on a short-term recovery under pressure.

Further losses below $1.21 would confirm the bearish view and suggest that the price had resumed the medium-term downtrend. This is reinforced by the declining 50-day SMA and its move below the 200-day SMA.

​​A close above trendline resistance from the July highs would be needed to hand the buyers the short-term advantage.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY moves sideways below ¥150

​There continues to be little movement here with USD/JPY, the price is unable to close above ¥150.

​​Bullish momentum has stalled in recent weeks. The price shows little desire to move above ¥150, given that this might incite the Japanese Ministry of Finance to intervene to hold the pair below this level.

​However there is, for the moment, little sign of any bearish pressure building either, with even modest intraday dips finding buyers.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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