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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch: EUR/USD, GBP/USD, USD/JPY

Losses in equities have been mirrored to some extent in USD/JPY, but both EUR/USD and GBP/USD are moving higher.

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EUR/USD moves higher from base around $1.15

EUR/USD is moving higher after several days of sideways movement around $1.15.

Further gains will target $1.18, the highs of late September. Over the past few days, short-term dips intraday have found buyers, and a move back below the $1.15 level would suggest the rally has ended.

GBP/USD buoyed by Brexit hopes

GBP/USD has climbed steadily since the low last week, and since then each intraday sell-off has been met by buying.

With the price back above $1.32 a run towards $1.33 is now on the cards, and a close above this level in the longer term opens the way to $1.3470. Recent lows at $1.3135 and then $1.3046 could provide support.

USD/JPY follows equities lower

USD/JPY is one area where forex markets have seen similar drama to equity markets.

The retracement has been swift and may well continue, with the 50-day simple moving average (SMA) at ¥111.82 one possible area of support, and then rising trendline support from the March lows at around ¥111.65. The recent high at ¥113.33 is the first target in the event of a rally.

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