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FX markets continue their recovery from last week’s risk-off moment, as EUR/USD, GBP/USD and USD/JPY all move higher.
Overnight weakness for EUR/USD seems to have given buyers another opportunity, but they will need to push the price above $1.16 to clear the way to further upside.
Above here, $1.18 comes into view. A close below $1.15 is needed to suggest a bearish turn.
Despite the mixed signals on Brexit, GBP/USD has rallied once again.
Fresh gains target $1.3250, and then on to the September high at $1.33. The bullish view remains unless we see a close below $1.31.
USD/JPY could be executing a classic bounce off a rising trendline, finding support around ¥111.60, where the trendline from the March lows comes into play.
We have yet to see a new higher high intraday however, so a move above ¥112.50 is needed to suggest bullish momentum has the upper hand. Despite this, risk-reward may now favour the bulls, with a view to seeing the current rising trend continue.
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