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EUR/USD moves up while GBP/USD edges lower and USD/JPY downtrend reasserts itself

The bounce in EUR/USD seems set to continue, while GBP/USD stalls and USD/JPY pushes down after Monday’s failed recovery.

Transcript

EUR/USD makes further gains

EUR/USD has continued to move higher for the past three sessions, having found support around $1.1775 last week and creating a higher low.

This helped to reinforce the more bullish view that has emerged since the beginning of the month. Further gains target $1.19, but a break above this level is still needed for a more bullish longer-term view to emerge.

GBP/USD gains stall for now

Friday’s recovery maintained the uptrend in GBP/USD, but some momentum is fading as we move further into the week.

Having created a new higher high last week the longer-term upward move is not yet in peril, but a drop below $1.31 would bring another test of rising trendline support into view. A renewed move higher targets $1.33, the high from last week.


USD/JPY downtrend back in play

USD/JPY has moved back below the 50-day simple moving average (SMA) of ¥105.13, creating another lower high and maintaining the long-standing downtrend.

Yesterday’s attempted rally back towards the 50-day SMA was quickly defeated and further losses have been seen since then. Further declines will target ¥103.50, while a move above ¥105.50 is required to reverse the ongoing negative view.

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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