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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.

EUR/USD and GBP/USD stabilise but USD/JPY stuck below resistance

EUR/USD and GBP/USD suffered sharp drops yesterday, but some signs of stabilisation have been seen, while USD/JPY is yet to break higher.

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EUR/USD attempts to stabilise

The EUR/USD pair plunged yesterday from $1.20, but the decline has slowed as the price reaches $1.19.

A possible higher low here might provide a further buying opportunity for a renewed push towards $1.20 and higher. Alternatively, further declines bring rising trendline support from the 12 August low into view around $1.183.

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

GBP/USD continues to climb

Dollar strength continued to weigh here as well for GBP/USD, pushing the price back from its latest high.

While the price has dropped below the 50-hour simple moving average (SMA) of $1.3384, it has moved momentum indicators back towards oversold readings, providing the potential for a new higher low and an eventual push higher. Further declines bring $1.325 into view, particularly as no-deal Brexit headlines make a return.

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

USD/JPY edges higher

The price continues to recover some of the ground lost last week for USD/JPY. However, gains have stalled at ¥106.10, with no sign yet of a break higher.

However, a higher low yesterday at ¥105.60 provides hope of a rise in bullish momentum, potentially opening the way towards ¥106.80 and higher. A drop below ¥105.70 might bring a more bearish view into play raising the prospect of a move back towards ¥105.25.

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

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