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EUR/USD struggles as GBP/USD and USD/JPY push higher

While the EUR/USD bounce has stalled, GBP/USD and USD/JPY continue to see further gains.

EUR/USD stalls below 50-day SMA

The recovery for EUR/USD has run into resistance below the 50-day simple moving average (SMA) at $1.2156, with the price showing little desire so far to push on above this level.

This dents the bullish view occasioned by the break higher out of trendline resistance, but does not entirely remove it. A rally above the 50-day and then through $1.22 would revive the bullish view, while sellers will need to drive the price back below $1.20 to provide an indication that a new move lower is underway.

GBP/USD hits new high

The brief pullback into early February is now a distant memory, as the GBP/USD price moves on to a new high for this current uptrend.

As noted yesterday, there is little standing in the way of further gains, with a continued move higher expected unless we see the price drop back below Friday’s low of $1.3773.

USD/JPY returns to 200-day SMA

After bottoming out at ¥104.50 last week and creating a higher low, USD/JPY has surged to the 200-day SMA at ¥105.56.

The uptrend from the January low is intact, and further gains are expected, targeting ¥106.10 in the first instance. A loss of ¥105.00 and then ¥104.80 would mark a more bearish development.

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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