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EUR/USD moves sideways as GBP/USD and USD/JPY drops

Further losses have been seen for GBP/USD and USD/JPY, while EUR/USD drifts sideways.

EUR/USD stuck in range

The EUR/USD pair continues to drift sideways as it is stuck bouncing between $1.078 and $1.09.

The current drop into the lower bound of the trading range sets up a possible rally towards $1.09. A breakout of this range is needed to provide longer-term direction.

GBP/USD continues to fall

A clearer downtrend is in progress for GBP/USD, with lower highs and lower lows forming over the past two weeks.

A rally yesterday hit trendline resistance from the 8 May high, while rebounds towards $1.23 may provide further selling opportunities. Alternatively, a breakout above $1.232 would suggest a new trend higher is underway.

USD/JPY continues sharp retracement

For USD/JPY, the losses of the past three sessions have reversed much of the gains made since 6 May, but arguably this retracement leaves the bullish view intact.

A rally above ¥107.00 would signal that the buyers are back in control, while further losses towards ¥106.60 continues to adhere to the descending channel, in place since 11 May.

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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