CFDs are complex instruments. 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. CFDs are complex instruments. 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 bounce to be short-lived, while GBP/USD holds firm and USD/JPY retracement halts for now

The euro managed a small bounce against the dollar, while the greenback is attempting to recover after a recent run of losses against the yen.

EUR/USD’s brief bounce may not last

Relief that the European Central Bank (ECB) did not pick a more aggressive inflation target gave the EUR/USD pair a small lift yesterday, reversing most of the losses of the past two days.

But the bearish view remains intact, unless the price can move back above $1.19 in coming sessions, when a more guardedly bullish view may develop. Sellers will be looking for a new move to the downside that takes out $1.18.

GBP/USD stabilising around recent low

The past week has seen GBP/USD dips below $1.376 find buyers, therefore, preventing any further downside.

Now the buyers need to step up and push the price back above $1.385, in order to firmly establish that a low has been created. The bearish view remains on ice until the price drops back below $1.374.

USD/JPY recovers around 50-day SMA

The USD/JPY’s retreat from the July high has carried it back to the 50-day simple moving average (SMA) at ¥109.80, with a dip below this finding buyers yesterday.

At present this looks like a retracement in the uptrend, which remains intact. A move below ¥109.50 would begin to negate this view, but for now a continued bounce from a higher low seems a likely development.


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