Risk appetite bolsters EUR/USD, GBP/USD and USD/JPY
The euro, sterling and USD/JPY are all rallying this morning, as trade war and election news both provide reason for optimism.
EUR/USD continues to rally
Dip buyers reign supreme for EUR/USD, as the price pushes on above the 200-day simple moving average (SMA) and begins to move through $1.1175 resistance.
Further gains target $1.124, and with a solid uptrend in place on the intraday chart, dips towards the 50-hour SMA at $1.1129 may provide fresh buying opportunities. The price will need to move back below $1.11 to provide a firmer bearish view.
GBP/USD surges on election news
Having surged overnight, GBP/USD is now at its highest level in 18 months.
We can expect some of this move to be reversed in coming days, but the firmly bullish impression remains in place even with a drop back towards $1.32.
USD/JPY looks to break higher
Away from Brexit news, the signing of a US-China trade deal now seems very close, and this has allowed USD/JPY to revive its flagging rally.
The price is back towards the ¥109.55 area that has marked resistance for months, but it looks like we will see further gains that take us on towards ¥110.35. The price looks a touch overextended intraday, but dips towards ¥109.00 may well see fresh buying pressure develop.
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