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EUR/USD and GBP/USD climb against the dollar, and USD/JPY moves higher again

Some dollar weakness has provided space for EUR/USD to bounce and GBP/USD to continue its recovery, while against the yen the dollar has recouped Wednesday’s losses.

Transcript

EUR/USD finds strength to bounce

A rebound has finally materialised for EUR/USD, at least in the short term. The first target is the $1.164 swing high from 4 October, and if this is pierced to the upside then buyers may be able to push on towards the 50-day SMA at $1.1722.

This is only a recovery within a longer-term drop however for now, so bulls should be cautious about pushing their luck too far.

GBP/USD rebound continues

A more substantial recovery is in place for GBP/USD, but again it takes place within the run of lower highs and lower lows seen since the summer.

Sellers will be on watch for any resumption of the move down, while buyers will hope the price can clear the 50-day SMA at $1.3721 and then move on above the late September high at $1.375.

USD/JPY recoups losses

There is little scope for weakness for USD/JPY, with buyers already causing the price to recover most of yesterday’s losses.

Gains above ¥113.70 have been difficult to achieve over the past few days, holding back upward progress. A deeper move below trendline support at ¥112.50 would mark a more bearish development.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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