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EUR/USD and GBP/USD fall as USD/JPY climbs

Dollar strength has seen EUR/USD and GBP/USD drop back, while USD/JPY continues to make gains, pushing back towards last week’s peak.

EUR/USD pushes lower

The EUR/USD pair continues to drop back from last week’s highs, and while it has rallied off $1.172 support, it is still below trendline resistance from last Thursday’s peak.

Below $1.172 the price could also find support at $1.17. A rally through $1.175 would mark a more bullish development, clearing the way for a recovery of recent lost ground.

GBP/USD stable after employment data

While the UK’s economic position worsens, the pound has held its ground against the US dollar. Dips towards $1.301 yesterday found buyers for GBP/USD, as they did on Friday.

Trendline resistance from Thursday’s high has held back progress; a rally through $1.311 would mark a break higher, while bears will want to see a drop below $1.298 to clear the recent zone of resistance.

USD/JPY continues to climb

The price of USD/JPY has maintained its general move higher over the past few days, reversing the weakness seen earlier in August.

The next target to the upside is ¥106.40. A reversal below ¥105.70 is needed to provide a more bearish view.

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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