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EUR/USD holds its ground while GBP/USD clings to highs

The euro is managing to hold its ground against the dollar, while the pound remains close to its recent highs.

EUR/USD looks to bounce after holding support

Friday’s furious sell-off found support around $1.104, and EUR/USD has gained ground since then.

The price held above the 200-hour simple moving average (SMA) of $1.1057, and if it can move back above $1.108 then a rally to $1.111 could be in the offing. A move above here could reignite the overall bounce in the pair, especially since it held the double bottom in November around $1.10.

GBP/USD holds close to $1.32

GBP/USD shows little sign of turning lower, although it has slowed its ascent in recent sessions. However, it clings on to the seven-month highs, with $1.32 and then $1.332 the next levels to watch.

Sideways price action over the past few days provides little clear direction, and ahead of the election we may see a deeper retracement towards $1.303, which might provide a more attractive buying opportunity. A breakout above $1.318 would point towards fresh bullish momentum.

USD/JPY decline slows above 50-day SMA

USD/JPY has shown little in the way of bullish momentum over the past week or more, but declines have been halted at the 50-day SMA, with a clear slowdown in bearish momentum.

If the price can reverse back above ¥109.00 then a higher low may be in place, allowing the pair to target ¥109.50 and higher in due course. A close below ¥108.50 would be a bearish development and suggest that the rebound from the August lows might finally be running out of steam.

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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