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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

​​​EUR/USD, EUR/GBP await ECB rate decision while GBP/USD finds support​​​

​​Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of the ECB rate decision, US retail sales and PPI.

Euro Source: Bloomberg

​​​EUR/USD hovers above 3-month low ahead of ECB decision

EUR/USD continues to hover above its early September low at $1.0687 ahead of the European Central Bank’s (ECB) rate decision today in which another rate hike may be seen.

​EUR/USD needs to rise above this week’s high at $1.0769 in order to attack the 200-day simple moving average (SMA) at $1.083 and the July low at $1.0834.

​Failure at $1.0637 would lead to the May low at $1.0636 being targeted.

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

EUR/GBP traders await ECB rate decision

EUR/GBP remains within its June-to-September sideways trading range, now above the 55-day SMA at £0.8583 as traders await the ECB’s rate decision.

​Only a rise above Wednesday’s high at £0.863 would put the $0.8658 to $0.8669 June and August highs in to the frame.

​Slips through the 55-day SMA could lead to a slide towards Monday’s low at £0.8559. Further down lies the September low at £0.8524 which was formed 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 holds above the 200-day SMA

GBP/USD remains above its 200-day SMA at $1.2434, which held the cross on Wednesday, despite UK house price balance hitting a 14-year low. It measures the gap between the percentage or respondents seeing rises and falls in house prices.

​A slip through Wednesday’s low at $1.2435 may lead to the next lower June low at $1.2369 to be reached.

​Resistance remains to be seen 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, though.

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

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