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EUR/USD rallies, while GBP/USD holds steady and USD/JPY drops

The euro has rallied through resistance in early trading, while cable has found support once again at $1.22.

Is EUR/USD showing signs of life?

The EUR/USD pair has pushed higher in early trading, moving above $1.100 and showing notable bullish momentum.

A close above $1.100 helps to provide a more bullish view in the near term, targeting $1.109 and the September high. Short-term weakness towards $1.097 may provide another buying opportunity.

GBP/USD holds at $1.22

While the GBP/USD pair has come under heavy pressure this week, it has managed to hold $1.22, the lows from last week. If it can continue to hold this level then a push back to $1.23 may materialize.

A close below $1.22 opens the way to $1.20 and the low from early September. Overall, the longer-term downtrend remains in place.

USD/JPY knocked lower

USD/JPY spiked to the top of its current downward channel this morning, and then fell back. However, while this is a potentially bearish development, we have seen higher lows since last Thursday, suggesting at least another challenge of the upper channel bound is likely.

However, if the price moves above ¥108 then the pair will acquire a more bullish view, having broken out of the channel.

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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