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EUR/USD rallies, along with GBP/USD, but USD/JPY falls back

There is no sign of a reversal lower in EUR/USD, while USD/JPY keeps falling.

EUR/USD climb continues

EUR/USD has returned to the $1.20 area, and has also managed to move back above the 50 day simple moving average (SMA) at $1.1963.

The rebound shows little sign of slowing, and a break back above $1.20 would reinforce the view that a renewed move higher is beginning. Sellers will be on watch for a reversal back below $1.195 that could spark a renewed move lower and breathe new life into the pullback from the January highs.

GBP/USD attempts to rally

The small rebound of GBP/USD from the lows of last week continues, but without much enthusiasm it seems.

The ongoing downward channel remains in place, which means a move towards $1.385 could hit resistance and be followed up by a turn lower. A break above $1.387 would provide a more bullish view and open the way to $1.40.

USD/JPY continues its poor run

USD/JPY has shown that the dollar weakness has continued throughout the week, with no sign of a reversal of the lower intraday highs that have dominated since the end of March.

This short-term weakness thus seems set to continue, unless and until the price begins a recovery that will see a new intraday higher high and is followed up by bullish crossovers in stochastics and moving average convergence/divergence (MACD).

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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