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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​EUR/USD, GBP/USD and USD/JPY slip ahead of weekend

​​Outlook on EUR/USD, GBP/USD and USD/JPY as resolution to US debt ceiling negotiations likely be found.

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​​​EUR/USD trades at near two-month low

​​​EUR/USD's recent descent has taken it to a near two-month low as flight-to-quality flows propped up the greenback due to the ongoing US debt ceiling negotiations. The cross is trying to stabilise around Thursday’s low at $1.0762, below which lies the mid-March high at $1.076. Further down sits the 24 March low at $1.0714.

​Resistance above the early-April low at $1.0789 can be seen at the mid-February high at $1.0804. The next higher 10 April low at $1.0832, last week’s low at $1.0848 low and the 55-day simple moving average (SMA) at $1.0868 are unlikely to be reached on Friday.

​An unexpected bullish reversal and daily chart close above the one-month downtrend line and Tuesday’s high at $1.0886 to $1.0904 is needed for a positive bias to gain hold.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD continues to slide amid ongoing US debt ceiling negotiations

GBP/USD's two-week descent has taken it close to the $1.2387 to $1.2345 mid- to late-April lows which should offer good support. This is despite UK consumer confidence improving for the fourth month.

​Support below $1.2345 sits at the mid-February high and early-April low at $1.2275 to $1.227. In case of a minor bounce being seen on Friday, the $1.2445 mid-May low may cap.

​Only a currently unexpected bullish reversal, rise and daily chart close above Wednesday’s $1.2546 high would put the late-April high at $1.2584 on the map.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY comes off six-month high

​After six consecutive days of rising, USD/JPY is beginning to give back some of its recent gains on profit taking ahead of the weekend.

​The cross is thus retracing back from its ¥138.74 six-month high made on Thursday. It is about to test the March and early-May highs at ¥137.91 to ¥137.77 which may offer support. If not, the 200-day SMA at ¥137.09 should do so.

​Were a currently unexpected rise take the currency pair to above this week’s ¥138.74 high, the late-November high at ¥139.89 would be eyed.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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