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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 try to stabilize while EUR/GBP range trades

​​Outlook on EUR/USD, GBP/USD and EUR/GBP amid weaker-than-expected Eurozone growth and rising UK wages and unemployment.

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​​​EUR/USD stays close to 3-month low

EUR/USD remains under pressure as Eurozone growth forecasts were revised lower. The Euro Area economy is expected to grow by 0.8% in 2023, lower than the previously projected 1.1% expansion, as persistently high inflation exerts pressure on consumption, the European Commission’s Summer 2023 Economic Forecast showed.

​EUR/USD is thus coming off its $1.0769 intraday high and is seen slipping back towards the $1.07 region. Further down lurks three-month low at $1.0687. ​A fall through Thursday’s $1.0687 low would target the May low at $1.0636.

​Minor resistance sits around the $1.0766 August low and Tuesday’s intraday high and, further up, along the 200-day simple moving average (SMA) at $1.0826 as well as at the July low at $1.0834.

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

​EUR/GBP trades in the middle of its sideways trading range

EUR/GBP continues to trade towards the middle of its June-to-September sideways trading range around the 55-day SMA at £0.8584 as Eurozone growth is slowing while inflation remains sticky.

​A rise above last week’s high at £0.8601 would engage the late August high at £0.861 but a fall through Monday’s low at £0.8559 the current September low at £0.8524. It was made close to key support seen between the £0.8522 to £0.8504 June and July lows.

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

​GBP/USD tries to find support above the 200-day SMA

GBP/USD tries to hold above last week’s $1.2446 3-month low as the UK unemployment rate edged up to 4.3% for July, while wages including bonuses rose 8.5% for the three months to July, ahead of forecasts.

​A slip through last Thursday’s low at $1.2446 low would eye the 200-day SMA at $1.2431 but may offer support. If not, the June low at $1.2369 could be reached as well.

​Resistance can be spotted at the $1.2549 late August low and Monday’s high and then also at the $1.2591 June low. While next higher resistance at $1.2819 isn’t overcome, the medium-term trend remains bearish.

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

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