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EUR/USD holding support, while GBP/USD and USD/JPY are under strain

While EUR/USD is trying to hold key support, cable and USD/JPY are turning lower, as risk aversion grips markets once again.

EUR/USD fights to hold key support

The EUR/USD price continues to hold above $1.10, giving hope to the bulls that the pair is poised to rebound once more from this level, as it did in November.

Swing traders may look to take advantage of this defence of support, although over the week so far the hourly chart has seen the price unable to move above $1.103. As noted on Tuesday, a possible bullish wedge is in play, but we have yet to see much upside momentum that might signal the buyers have regained control. For now, the price is stuck in no-man’s land, so we wait for a break above $1.103 or below $1.099.

GBP/USD slips lower in early trading

Early trading has seen the GBP/USD price dip down towards $1.2975, the lows of the past week, and close to rising trendline support from the September-low.

A break below this brings $1.277 into view, and would imperil the more bullish view that has been in place since October. Gains this week have been contained around $1.303, so any bigger rally first needs to clear this level, which would also see it move above the 50-hour simple moving average (SMA) at $1.3013.

USD/JPY back to Monday lows

The attempted rebound earlier in the week has fizzled out, and the USD/JPY price finds itself back at the lows from the very beginning of the week.

The sequence of lower highs remains in place, and so now we wait to see if the sellers can break support around ¥108.80. This would bring ¥108.30 into view. A rebound requires the price to move back above ¥109.20, where gains stalled earlier in the week.

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