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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.

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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