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EUR/USD gains falter as GBP/USD and USD/JPY come under pressure

The rebound in EUR/USD has run into resistance, while GBP/USD and USD/JPY have both declined in recent sessions.

EUR/USD bounce hits a speedbump

The bounce of EUR/USD from the lows of last week has stumbled at the 200-day simple moving average (SMA) at $1.1885, with the price failing to hold its gains from yesterday. A reversal has yet to develop however, and the pair is holding its ground for now ahead of European Central Bank (ECB) minutes today.

Thus we could see a reversal, but for now there is insufficient evidence for this. A drop below $1.18 would provide further reinforcement of this view, while continued gains above $1.19 clearly hint at a move towards the 50-day SMA ($1.1973).

GBP/USD edges higher after two days of losses

Losses of GBP/USD have stalled above $1.37, avoiding for now a drop below the late March lows.

The uptrend of the past ten months has come under heavy pressure, so a recovery back above $1.385 would be a welcome development for the buyers. Alternately, the sellers will want to see continued declines below $1.367 that will clear the lows of March and open the way to further downside.

USD/JPY heads lower as dollar weakens

A fresh decline of USD/JPY has seen the price edge below Wednesday’s lows, and further losses towards ¥108.50 or even ¥107.50 seem likely. A recovery above ¥110.00 would provide a more bullish outlook, but for now the sellers appear to hold sway.

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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