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​​EUR/GBP drops back but AUD/USD and EUR/JPY push higher​

While the euro is faltering against sterling after recent strong gains, AUD/USD and EUR/JPY are both rallying.

GBP Source: Adobe images

EUR/GBP drifts lower from recent high

​After hitting a three-month high earlier in the week, EUR/USD price has dropped back to the 200-day simple moving average (SMA).

​The huge gains of late July and early August mean that this is not surprising, but overall the new bullish view remains in place. If the price holds the 200-day SMA then a rebound towards £0.86 may develop. A close back below £0.85 in coming weeks might signal that a lower high has been created.

EUR/GBP chart Source: PreRealTime
EUR/GBP chart Source: PreRealTime

AUD/USD in strong form

​Another big up day for the AUD/USD pair has seen it move back to the 200-day SMA, reaching its highest level in two weeks.

​The price has recouped much of its recent weakness, though it remains well off the highs of the first half of July. A close back above $0.66 would bolster the bullish view.

​Meanwhile a reversal below $0.66 would be a bearish development, creating a lower high.

AUD/USD chart Source: PreRealTime
AUD/USD chart Source: PreRealTime

​EUR/JPY makes gains

​Two days of gains have helped the EUR/JPY pair to recover some lost ground, though it is still well below the 200-day SMA.

​There is a high risk of a lower high being created below the 200-day which will reinforce the bearish view. Additional gains target ¥161.87, and then to ¥163.64.

EUR/JPY chart Source: PreRealTime
EUR/JPY chart Source: PreRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd 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. See full non-independent research disclaimer and quarterly summary.

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