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EUR/USD and GBP/USD stabilise but USD/JPY stuck below resistance

EUR/USD and GBP/USD suffered sharp drops yesterday, but some signs of stabilisation have been seen, while USD/JPY is yet to break higher.

EUR/USD attempts to stabilise

The EUR/USD pair plunged yesterday from $1.20, but the decline has slowed as the price reaches $1.19.

A possible higher low here might provide a further buying opportunity for a renewed push towards $1.20 and higher. Alternatively, further declines bring rising trendline support from the 12 August low into view around $1.183.

GBP/USD continues to climb

Dollar strength continued to weigh here as well for GBP/USD, pushing the price back from its latest high.

While the price has dropped below the 50-hour simple moving average (SMA) of $1.3384, it has moved momentum indicators back towards oversold readings, providing the potential for a new higher low and an eventual push higher. Further declines bring $1.325 into view, particularly as no-deal Brexit headlines make a return.

USD/JPY edges higher

The price continues to recover some of the ground lost last week for USD/JPY. However, gains have stalled at ¥106.10, with no sign yet of a break higher.

However, a higher low yesterday at ¥105.60 provides hope of a rise in bullish momentum, potentially opening the way towards ¥106.80 and higher. A drop below ¥105.70 might bring a more bearish view into play raising the prospect of a move back towards ¥105.25.

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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