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EUR/USD and USD/JPY move higher, but GBP/USD still under pressure

EUR/USD has managed to hold key support from April and May, while the rally in USD/JPY goes on as it approaches the highs last seen at the beginning of the month.

EUR/USD edges off key support

The EUR/USD pair has found a bottom around $1.1118, the lows that held in April and May.

If a bounce begins from here then it may encounter resistance around $1.12, trendline resistance from the June high. A break above $1.122 signals a more bullish view has developed. For the moment the price is holding $1.1118, but a break below this targets $1.10 and $1.085.

GBP/USD still under bearish pressure

Rallies in sterling at present seem to have very short lifespans. The sharp declines of the past two days demonstrate strong bearish momentum for GBP/USD, so it will need a substantial recovery to suggest that a short-term bottom is in.

In the meantime, a bounce towards $1.225 may provide another selling opportunity.

USD/JPY returns to early July peak

The rally here for USD/JPY has continued, establishing new higher highs and higher lows on the hourly chart.

The price has returned to the ¥109.00 area which marked the peak in early July. A push above here signals that fresh bullish momentum is in evidence. Having dropped back overnight, the price now appears to be forming a higher low around ¥108.50, so if this holds then a push higher above ¥109.00 may develop. Alternately, further declines head towards ¥108.40 and then ¥108.10.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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