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EUR/USD and GBP/USD recoveries falter

The euro and sterling are moving lower again against the dollar after an overnight bounce, but USD/JPY is edging higher.

EUR/USD heads lower

Yesterday’s sharp drop has carried EUR/USD back towards the recent support zone just above $1.17.

A small overnight bounce has hit resistance at $1.177, and further losses now target a move below $1.17 to break through this zone of support. A more bullish view requires a move back above $1.18 that then targets $1.187.

GBP/USD rebound falters

In common with other risk markets, the GBP/USD has attempted to rally overnight but has then fallen back towards yesterday’s lows.

For cable this area around $1.277 would mark a key level, as a move below here opens the way to move downside, towards $1.263 and down to $1.259.

USD/JPY stages recovery

USD/JPY moved higher from yesterday afternoon, and unlike other assets has not reversed lower so far this morning.

If the price moves back above ¥104.90 then a more guardedly bullish view begins to emerge. A fresh move lower targets ¥104.00 and the lows from Monday’s session.

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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