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FX levels to watch: EUR/USD, GBP/USD, USD/JPY

The dollar’s run has been stopped in its track by Donald Trump, who has taken aim at the Fed’s policy of raising interest rates. 

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EUR/USD lifted as Trump takes on Fed

EUR/USD bulls have been given an opening by remarks from the White House that have put pressure on the dollar.

The rebound from $1.13 continues, but buyers will want to see the price back above $1.1550 in order to suggest that the rally has broken through the previous support zone around this level that has now become resistance. From here, $1.1628 then comes into play, followed by the $1.1650 area and downtrend resistance running from the May highs. Dips towards $1.14 may find buyers, with a move below $1.1350 suggesting a move back to $1.13 support.

GBP/USD reclaims $1.28

Here too for GBP/USD a rebound is in play, but it remains a short-term bounce unless we see a firm push above $1.31.

Any failure below this level would suggest a chance to sell the pair once again, with a view to it falling back to $1.2635 and the lows from last week. Above $1.31, $1.3204 comes into play.

USD/JPY falls to 200-day SMA

USD/JPY dropped below ¥110.30 support that has held since early July, but has bounced from the area of the 200-day simple moving average (SMA) at ¥109.85.

The price continues to be constrained by the descending trendline from the July high, so any sustained rebound needs to move above this line (which would suggest a push above ¥111.00). Further declines will see the ¥109.50 support zone tested.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.